What Happens to Your Crew When You Sell Your Trade Business
When I talk with owners of HVAC, plumbing and electrical companies, the first question usually isn't about price. It's "what happens to my guys?" I think that says a lot about the people who build these businesses.
I'm Madison Clarke, and I live near Johns Creek, Georgia. Trellis Equities is a small, family-backed search fund. We're looking for one business to buy and keep for the long run. Your crew is the main reason a business like yours is worth buying, so this question matters to us as well. Here's how I'd think it through if I were in your shoes.
The honest answer: it depends on the buyer
Not every buyer has the same plans for your people. Some intend to keep everything running as it is. Others plan to merge your company into a bigger operation, move dispatch somewhere else or cut overlapping roles. Neither approach is automatically wrong, but you deserve to know which one you're dealing with before you go far down the road.
Questions worth asking any buyer directly:
- Do you plan to keep the whole team, including the office staff?
- Will the company name, the trucks and the phone number stay the same?
- Who will the crew report to on day one, and will you be there in person?
- Are you planning any changes to pay, benefits or schedules in the first year?
- What happens to my service manager or lead tech?
A buyer who means to keep your team should be able to answer these without hesitating.
How the deal is structured can matter to employees
A sale can be set up in different ways. For example, a buyer might purchase the company's assets or its stock. That choice can affect things like employment paperwork, benefits and accrued time off. I'm not the right person to explain the details for your situation. Your attorney and CPA are. It's worth asking them early how each option would affect your people, not only your taxes.
When (and how) to tell the crew
Most owners keep a possible sale confidential until it's close to final, and for good reason. News that the boss might be selling can unsettle good employees and make customers nervous. It's normal to ask a buyer to sign a confidentiality agreement before you share details.
When the time does come, many owners find it helps to:
- Tell key people (a manager or lead tech) a little earlier, if the buyer agrees
- Explain the news yourself, in person, rather than letting rumors do it
- Introduce the new owner directly and let the crew ask questions
- Stay visible for a while, so customers and staff can see you're comfortable with the handoff
Your manager is the bridge
If you have a service manager, operations manager or lead tech who runs the day-to-day, that person is probably the most important part of a smooth transition. They know the customers, the schedule and the crew. In Georgia's licensed trades, the company may also be operating under a licensed person who works there full-time, so if that person is someone other than you, keeping them on board matters even more. Your attorney can explain how that works for your company.
Some owners choose to share part of the sale's success with key people, for example through a stay bonus. Whether that makes sense for you is a conversation for your advisors.
You can ask for commitments in writing
If keeping your team matters to you, say so early, and ask your attorney how to reflect it in the deal. That might cover how long you'll stay on to help, what role you'll play, and what the buyer has said about the team. A buyer who shares your values shouldn't mind putting their intentions on paper.
What I'd want my own crew to hear
If I'm lucky enough to buy a business like yours, I'd want the crew to hear, from both of us, that the work, the trucks, the customers and the people are staying. I'd want to learn from them more than I'd want to change anything.
If your team is the thing you care about most, I'd be glad to talk about how we'd look after them together. You can read more about me here.