Managing Employees after an acquisition

So you just closed a transaction to purchase a business.? Congratulations to you!

We hear so often that now the hard work truly begins

You purchased a business you do not have any experience running or owning.? Several employees leave, and you must hire new ones.? What now?

This week, I had several conversations about employee turnover with new searchers and existing clients.

Why? Because it is real life and what might happen when you finally close your transaction.

Or maybe existing employees come into your office and request a raise, now what?

How do you handle this?? What do you say?? What is your response?? Have you even considered this along your journey to entrepreneurship?

You're so busy figuring out if the deal works, but doing all the due diligence may just include examining each employee and their work.

Perhaps you're reading this thread because I grabbed your attention. I hope so. My experience as a prior business owner, current owner, investor, and CM&AA has provided me with a lot of experience.?

When it comes to hiring the right people, it matters most.

It is extremely costly to hire the wrong folks. Often, it's not the direct questions that give you the results you seek. For example, never ask a salesman what he sold because, guess what, he will sell you!

So here is some structure that you might want to consider.

A.? Value and Culture Fit:

?? Describe the kind of work environment where you thrive?

?? How do you handle conflict when it arises?

?? Tell me about your core values?

?? How have you handled change and give me an example?

B. Problem Solving/Adapting:

?? How do you approach setbacks in your current job?

?? How have you dealt with your Supervisor when you did not agree with a decision they made or action they took?

??? What happens when you have identified a problem?

??? I shared with my team this:

We call it 3 to 1.? If an associate comes to me and says Bruce, we have a problem, my response is:? OK, now that you have identified the problem, come back to me with 3 solutions that you have identified and let's discuss the best possible one.

This makes them think for sure!

C.? Communication:

?? How have you worked with associates who might have

?a different communication style than you?

?? What steps do you take to build trust with your colleagues?

??? If something bothers you, how do you let others in the firm know?

D. Role/Specific Skill Set:

?? Find the correct question to ask that will set the right candidate apart from all the rest.? For example, in the lending business this is what I ask.? "Tell me about the deals you won't do?"? This gives me a very clear and decisive picture.

?? What must this role provide to you that will make you leave your current employer?

?? What skill sets do you possess that will ensure that we both can prosper from?hiring you?

?? What 3 words describe you best?? This is one of my favorites.? You will soon know a lot!

Now, what if an employee you have known for two days comes into your office and says, "I need a raise or I'm quitting?" It happens, and it happens a lot, according to several of my past borrowers.?They think they have you over a barrel.??

Be prepared.? Talk with the Seller.

Broach the subject as part of your diligence.? In conversations with existing clients, here is some feedback to share.

?? Explain to them that although their request may very well be warranted, you are new and need some time to evaluate it. Ask for a 90-day deferment.

?? In 90 days, go back to them, do not make them come to you.

?? Ask them why they feel a raise is warranted.? What have they done to earn it, how have they exceeded their job function and how has their contribution to the business helped it grow to your level of expectations.

?? A raise is something earned, not just given.? Its not like a cost of living increase.

?? Discuss with the Seller and ask if any employees are up for a raise anytime soon.? This will increase your overall salary if 3-5 employees are.

?? Also, discuss bonuses.? Is this normal?? Do employees expect this?? Has this been a practice in the past?? Discuss how they are given and when?

?

?? My points here are to make you think about the employees you will inherit.? Plan - Thought before action.

I hope this week's WSS has provided some value for you.? Look for employees that are competent but also align with your vision of what the future looks like for you.