Maree McSweyn – 17th September 2018
It is common practice once a business has been sold, that the previous owner provides training to the new owner.
The type, duration, and the complexity of the training is unique to each business and their practices, however it is important for sellers to have an understanding of what their responsibilities are.
Whilst sellers are not required to provide training, it will be a key requirement to a buyer. They will want to understand as much as they can about the business; existing policies, procedures, and relationships with vendors etc. A comprehensive training plan will be a great value driver when it comes to negotiating price.
The thought of providing training may seem foreign or uncomfortable to a business owner who has been in the game for many years. However, training provides the buyer an opportunity to identify areas of weakness, and prepare them for the challenge of running the business. The important aspects of training are;
Buyers come from various backgrounds, and from different levels of experience. More than likely, they will have business management experience. They Seller will need to equip the buyer with the information they need to run the organisation.
The training should be largely based on the questions and concerns of the buyer. It’s a good idea to meet with the buyer and your broker, to come up with a plan of training.
Sellers are keen for short training, buyers prefer more longer training. There will need to be some negotiation to determine a ideal time frame. The key will be to set a training period that will provide the buyer with the confidence to take ownership.
The specifics will need to be described in the contract. They will need to include the
– a general statement about the content of the training
– the consequences of the seller’s failure to meet training requirements.
Here at The Brokerage Australia, we support business owners from start to finish to ensure a smooth transition of ownership. The broker will continue to oversee the whole negotiation stage, working with all parties to ensure the sale reaches settlement. They also will continue to aid the process of transfer of ownership/responsibility of the business. We provide our clients with handy tools, to ensure that all tasks are kept on top of and completed when required.
The team of brokers at The Brokerage Australia has the experience to make sure a great deal is negotiated for the business owner; they have the skills to keep the buyer engaged, yet to also pay the maximum price for the business. Speak to the team for helpful advice on how to sell your business 1300 466 455.