Article by :
Jonathan Kwok
This article by Dunton Rainville was originally published on the Repreneuriat Québec website
When we talk about business transfers, attention naturally turns to the figures: financial statements, sale price, contractual clauses. These data are crucial, but they do not tell the whole story. The success of a transfer also, and above all, depends on an invisible but decisive asset: human relationships. Employees, customers, suppliers, partners, not to mention the seller and the buyer: everyone is affected, and everyone experiences the change in their own way.
A transfer may seem perfect on paper, but it can run into problems in reality. If relationships are neglected, continuity is undermined: key employees leave, customers become uncertain, and partners withdraw. Conversely, a buyer who pays attention to human capital creates fertile ground for a smooth transition and sustainable growth.
Employees and customers: two pillars to reassure
The announcement of a sale is almost always accompanied by a wave of uncertainty for employees. After years of loyalty, fears of reorganization or loss of benefits resurface. Some even consider leaving before the transaction is finalized. However, the loss of a key employee (a plant manager, a star sales representative, an experienced technician) can shake the entire structure.
The most successful buyers invest in their relationship with their teams from the due diligence phase onwards. Even before the sale is finalized, the buyer should organize individual meetings with key employees, clarify intentions regarding their roles, and consider improved contracts or recognition programs. From a legal standpoint, it is also important to review existing non-compete clauses and assess whether retention agreements are necessary to secure critical know-how.
Customers are also watching closely. They want to ensure that quality will remain unchanged and that the new owner shares the same values. In certain sectors (restaurants, professional services, retail), loyalty is based above all on the trust built with the outgoing owner. A personalized letter, a meeting, or a simple phone call is often enough to reassure them. In the digital age, some buyers also use social media to present their vision, while respecting the established tone. Be careful, however: some contracts include change of control clauses that require customer approval before the transfer.
Effective communication: the real driver of trust
In times of change, how and when you communicate makes all the difference. The seller must prepare the announcement, explain the process, and present the buyer as a trusted ally. The buyer then takes over: meeting the team, listening, sharing their vision.
Three key moments of communication:
- Before the announcement: the seller prepares the ground, identifies sensitive stakeholders, and anticipates their concerns.
- The announcement: joint presentation by the seller and buyer, with a consistent and reassuring message that emphasizes continuity.
- The first 90 days: the buyer listens, observes, and gradually builds credibility with all stakeholders.
A sincere handshake or a reassuring word in the hallway can sometimes have more impact than a long speech. These simple gestures embody trust, a fundamental value in any successful transition. From a legal standpoint, ensure that confidentiality clauses are respected during this period and that the public announcement is made only at the appropriate time.
Suppliers and partners: securing the value chain
Beyond the walls of the company, the transfer also affects suppliers and partners, who are often discreet but essential. These players have concrete questions: Will payments be made on time? Will agreements be respected? Will stability be maintained?
Ignoring these concerns is risky. A concerned supplier may tighten its terms or prioritize other customers. During due diligence, carefully review key contracts: some may contain termination clauses in the event of a change of control. A prompt payment or a meeting organized by the seller may be enough to solidify trust. Small gestures that ensure great stability.
Seller and buyer: a balanced relationship
The relationship between the seller and the buyer is undoubtedly the most delicate. For the seller, selling their business is never a simple transaction: it is the fruit of a lifetime of work, sometimes even a family legacy. “Letting go” takes time and goodwill. Giving them a clear role (advisor, ambassador, or temporary mentor) makes the transition easier for everyone involved.
The buyer, for their part, must resist the temptation to change everything at once. Revising the brand image, renegotiating contracts, reshaping the internal culture: these are all natural reflexes, but risky ones. M&A experts agree on one point: integration is the most sensitive phase. Observe first, understand then, transform gradually: this is the mark of leadership based on respect rather than disruption.
More than a transaction: a collective legacy
Ultimately, the success of a transfer cannot be measured in numbers alone. Financial statements set a value, but human relationships ensure continuity and pave the way for innovation. Taking care of employees, reassuring customers, consolidating partnerships, and building solid trust between seller and buyer not only paves the way for the immediate success of the transaction, but also for the future of the business.
Business succession in Québec: leveraging proximity
Business succession in Québec is above all a matter of trust and proximity. In an economic fabric where family-owned and regional SMEs abound, relational capital is often the main driver of success. Focusing on this capital from the outset ensures that the next generation of entrepreneurs inherits not only a viable business, but also a vibrant network and collective know-how that will continue to make our regions shine.