Notifying customers of change of ownership - Proactive vs. Reactive

September 18, 2024

by a searcher from University of Victoria in Vancouver, BC, Canada

Does anyone here have the benefit of hindsight to share from their experience in either notifying customers proactively that there is new ownership in a company vs responding to rumours or questions about changes in ownership?

Have you seen any one approach work better than others?

If the business has a full management layer and all customer-facing staff will remain the same, do you think it's better to be proactive and reassure customers or let them discover it many months later, when you could perhaps say, "Well, that happened nine months ago, and nothing has changed?"

For what it's worth, specifically I'm thinking through the lens of a project based manufacturing business with generally longstanding repeat customer relationships and a pretty removed current owner.

Reply by a searcher
from North Park University in Orlando, FL, USA

Hi Lee- I prefer to be transparent. I've been through this twice now (sold a company, then acquired a company). When we sold, we called our biggest customers and sent an email to everyone on day 2 after the acquisition (day 1 was telling the employees). When I bought my current company, we waited 30 days and then the seller reached out to a few long-term clients he had deep relationships and everyone got an email. I then reached out to our biggest customers directly. In both cases the team stayed in place and the customers really didn't feel much change. I would rather be up front and not have them find out second hand and then start to question anything else about the transparency of our business. I also didn't want to put employees in awkward situations not knowing who/what they could tell customers. In my current situation, we've had zero issues or concerns from customers about the transaction and many appreciated the call / email to give them the heads up. Good luck with your deal!!

Reply by a searcher
from Stetson University in Orlando, FL, USA

DEBT - Looking for financing (DEBT) options for a restoration & remediation company based in North Carolina with $3.8M in revenue and $350K in EBITDA. We are seeking a 3.5x debt financing (non-SBA loan) non PG. If you're interested or know of any lenders, please reach out! (We have committed 30% equity between Buyer and Seller) to make the deal work. Minority / MBE certified buyer.

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