In previous Deal Notes® 124 and 150, we discussed Site Visits and how to prepare for them. Site visits during a sale process can either be with just your M&A banker or your M&A banker and other parties (such as QofE providers or potential buyers).
As middle market aerospace and defense M&A bankers, every time we plan site visits with a client, we work with our client in advance to prepare for the possibility of employees asking our client, “who are those people?”
For 24 years, our recommendation to clients has been to develop a response that will withstand the test of time and will also avoid unnecessary concern among your employees. While we advise all visitors to avoid handing out business cards to employees, we do not recommend having visitors pretend to be people that they are not.
An owner stating untruths (such as: they are “insurance agents” or “friends of mine”) will not withstand the test of time. As the sale process advances, the untruths will become apparent, and you will lose the trust of your employees and that can be extremely damaging to your business.
Instead, we suggest that clients take an approach which is subtle and true and does not cause concern for employees. Depending on your circumstances, the best approach is often to say to your employees that you are considering raising capital to grow the business and the visitors are potential investors.
Navigating this delicate issue is just one of the many ways we help our clients throughout the process of selling their companies. While this is not a complex matter of corporate finance, it is a very complex issue from the perspective of managing your employees during the sale process. Our 24+ years of experience enables us to help our clients carefully navigate all the complex issues associated with selling a middle market company in the aerospace and defense industry.
Have a great day everyone,
Ryan Kirby
Junior Partner
