No Seller Training / Transition

October 08, 2025

by a searcher in Chicago, IL, USA

Curious if anyone has successfully acquired and transitioned a business with no seller training or transition period whatsoever. Currently exploring a business where the owner has retired and stepped away from the business for health reasons. The business is still operating, though sales have declined. On the one hand, seems positive that the business can still operate without his involvement, but on the other hand, I would be entirely reliant on a key employee from Day 1. I have managed small teams previously, but do not have relevant industry experience. Stay away or okay to pursue?

0 Likes

2 Replies

62 Views

Replies

Reply by a professional
from University of Michigan in Detroit, MI, USA

Hi Anon, some thoughts: (1) The seller can still commit to transitioning the business, even if he himself is not going to do the transitioning. (2) How long will it take you to mitigate the key employee risk? If a short period, perhaps you are okay taking on that risk. (3) Have the seller represent that he has no reason to believe that the key employee with quit in the near term. (4) Meet the key employee prior to the closing and have him / her sign a written employment agreement on mutually agreeable terms. Don't be afraid to sweeten the terms (if possible) to keep him / her onside for as long as necessary. I hope that helps. Let me know if you ever want to discuss in greater depth. Reach out at redacted

Reply by a professional
from Ohio State University in Westchester County, NY, USA

Would need to know more about what the key employee is doing. Is it something very technical, sales, or something else? Would also want to know key KPI's & processes, like how much margin & EBITDA is the business generating, concentration issues, retention, how customers are acquired, etc... ie, it's not a straight forward answer. You need to understand how much room you have to work through the key man dependency. If you are a strong operator (or have had work experience in quick learning environments, like consulting) and the industry isn't highly technical, I believe lack of industry experience is easy to overcome.

Join the discussion