Practice owners looking to sell their business should follow five steps in communicating with staff
In No More Practice 4, Jim Taggart is on a journey to maximise his earn out following the sale of his practice to Austbrokers. A key part of my role in the show involves advising Jim about the process as well as key considerations and potential options along the way.
One issue that Jim faces in selling his practice is engaging and retaining key staff and maintaining morale – a common challenge that many practice owners face in selling their businesses.
My advice for retaining staff and maintaining staff morale is quite simple:
1. Be respectful
2. Let people know they’re appreciated
3. Communicate from the get-go about what’s happening
4. Communicate as honestly and as transparently as you can
5. If possible, incentivise staff commercially to be part of that journey
In some practice sales, I have seen staff who have been expected to manage the transition and who have no sense of control, buy-in or reward – and that creates disharmony. So if sellers can provide staff with buy-in and give them a commercial reward along the way this will help improve the experience.
When a business owner decides they want to sell their practice, they should ideally speak to their staff as the first point of call or very early in the process as they will inevitably find out via an email or a phone call – and that’s when unhappiness can potentially set in around not being included or adequately communicated with.
In communicating with staff, practice owners should discuss why they’re selling the business, the outcomes they’re expecting and what role they expect the staff to play – so everyone should have a good experience along the way.
If you treat people with courtesy and respect, include them in the decision and explain the strategy around the sale, this helps staff retain a sense of ownership and buy-in – and this helps ensure a good experience for all.
