Investor's Business Daily
October 25, 2004 Monday
SMALL BUSINESS III
Unhappy Workers Are Troublemakers
If you're selling a small business, don't tell disgruntled employees about it until after the closing.
That's advice from Sunbelt Business Advisors.
"We have seen too many repercussions when employees are told before the closing," said Sunbelt Chairman Ed Pendarvis. "Yet there are times when the owner may feel morally obliged to tell key employees. Together, the soon-to-be owner and the current owner should meet with these employees. But be prepared for some lashing out, since an employee may feel abandoned and hurt by the owner's decision to sell. The employee may even make claims against the owner or the business. Hopefully, the presence of the new owner will have a calming effect, and the employee will not return to the workplace and engage in any malicious mischief."