M&A

[artherd]

I just got everyone into contract on my second business I've purchased instead of starting from nothing. (we close 03-01-20088), I'm starting to get a feel for this, and I like it. Any war stories, from others who do this with their own money?

[artherd]

wow I sure can kill a thread! ;)

[Lasombra52]

I can tell you this story based on my personal experience when I was younger and an employee. The company was bought out due to the owner having family problems and he couldn't focus anytime into the business so it had been in decline for awhile.

I was sorta management... in my own mind at least. And quite ticked off when the new owner came in a brought his own management staff instead of promoting from within. it was a family business and the family was the managers, they all left at the sametime.

Anyways, we all were under contract to stay with the company for like a year or two, something like that, or else we would sacrifice any retirement or vacation time or any benefits that we had already earned if we left.

Well the new management had a STEEP learning curve, and they knew exactly what they were doing and were unwilling to accept help from us. So we finally got feed up and I organized a walk-out.

I didn't lose that much, but I know that other people did.

My advice, make sure that if you bring in new management, that they are willing to listen to the employees. They might feel slighted since the old owner left. And if a whole bunch of new management is brought in, they may not respond well. Just remember, they have been working for that company longer than you have.

With any change there is going to be a little bit of resistance, just make sure you and everyone else try to head off any of that. GOOD LUCK!!!!