Navigating a Successful Training & Transition

It’s easy to see why buyers focus on a business’s finances during due diligence. But P&Ls and balance sheets only tell part of the story—they show how the business performed under the previous owner’s watch. Now it’s your business, and you’re the X-factor. With so much activity leading up to getting to the closing table, it’s often easy to get swept away in all this activity not invest much thought into what happens next. The training and transition phase is a critical opportunity to lay a solid foundation for your own success and it merits careful consideration.

This phase often comes fast and furious. You’ll need to get a handle on the day-to-day operations, understand the company culture, and learn about internal relationships—all while taking on the previous owner’s duties. Even the most well-intentioned seller may not realize the depth of what they know or the subtle nuances that make them successful. And while they may have documented procedures, there are often unwritten practices or “tribal knowledge” that keep things running smoothly.

To make the most of this phase, consider the following:

Remember, this transition is new territory for both you and the seller. They can’t treat you like an employee—you’re the new boss, and they respect that. Some sellers may have an agenda in mind, but others may think shadowing them is enough. Don’t hesitate to take the initiative to set clear goals and share your expectations. You can work together to create an agenda, giving you both a roadmap for what you want to accomplish by the end of week #1, week #2, and so on.

Listening to the Seller
No business runs perfectly all the time, and the seller may open up about challenges they’ve faced, whether with recruiting, managing team dynamics, or dealing with a hands-off landlord. Ignoring these insights could mean missing out on valuable lessons or solutions they’ve developed over time.

Once you take over, moving too quickly to make changes can backfire. Some operational processes may not make immediate sense, but as you learn more about the business and its culture, things will start to click. For example, employees often have a loyalty to certain routines or methods. Sometimes it’s habit, but other times there are underlying reasons that may not be obvious at first. Giving it some time before implementing major changes can create a smoother adjustment period for both employees and customers.

How the business is perceived by customers, employees, and the community is invaluable. This is the goodwill you’ve invested in, and you want to sustain and build on it. Understanding what contributed to the business’s reputation—whether it’s great customer service, quick response times, or strong community ties—can go a long way toward keeping customer loyalty and employee satisfaction high. Even if you plan to make changes, showing respect for the business’s legacy will serve you well.

Get a sense of each individual employee’s work habits, motivations, and preferences. Talk to the seller about what productivity you can reasonably expect from each, their individual work styles, and who may benefit from clear guidance versus autonomy. From observation, you can learn who are the informal leaders whose opinions hold greater sway with other team members. Observing, asking questions, and understanding the work culture can provide helpful insights for leading effectively.

Focusing on these intangible factors during the training phase will help ensure a smoother transition, preserve the business’s unique strengths and relationships, and set you up to make thoughtful changes if you decide to introduce new approaches down the line.