Preparing for Your Close Date
The big day is quickly approaching. You’ve engaged with the perfect acquirer, negotiated the best deal and locked down the purchase agreement. You’re not done yet though – selling a software company, especially a Vertical Market Software (VMS) company is a unique process. Here are some key considerations to make before your close date to ensure transaction goes as smoothly as possible:
Keep the Line of Communication Open with Employees
In order to maintain your employees' trust and loyalty, it is worthwhile to be open with them about the acquisition process and the reason that you have made the decision to sell. Also be sure your employees know the time you’ve vested into finding the right acquirer for the business.
A buyer like the Volaris Group, which is focused on the long-term strength of the business, will want to ensure that the employees are happy and will want them to continue adding value to the business. We firmly believe that sharing the acquisition plans and process with employees prior to the closing date is integral.
Inform your Customers about the Acquisition
Customers should also be told about the acquisition in a thoughtful way. Your customers depend on your product to run their business every day, and they may naturally be quite nervous about a change in ownership.
Since VMS companies have specific needs, selling to an acquirer who is familiar with VMS operations can make a world of difference to your customers. Not only will it help temper any feelings of uncertainty, it will also likely help with attrition.
Preparing for Change
No matter who you sell to, you and your organization will need to be prepared for some change. Some acquirers may impose significant changes on the business and the organization, and others may not. It is important for you as the business owner to understand this clearly prior to the closing date so that you are not caught by surprise, and that you can work closely with your employees and customers to both communicate and manage this change.