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Why Employees Are Your Company’s Best Asset

Writer's picture: Serdar KabulSerdar Kabul


Most entrepreneurs sell their businesses for less than what they had hoped because they don’t have an exit strategy in place. Why does this happen?


Because most entrepreneurs – who don’t have the benefit of hindsight – don’t invest in training their employees and building them up as key assets of the firm. While employees play a key role in helping you sell your company at a premium, it requires you to take the initiative by creating a healthy office culture, building long-term relationships with executives, and planning an exit strategy.


Many amateur entrepreneurs are inexperienced at empowering their management team. You simply can’t expect to just up and leave without the dominoes falling – if you don’t leave a solid foundation in place prior to making an exit. If the prospective buyer realizes that your key employees will jump ship just as soon as the deal is finalized, they probably won’t pay what you have in mind.


No one wants to inherit a sinking ship.


Sale of a Business Should Not Stop Day to Day Operations


Chances are, your employees are used to seeing you in charge and micromanaging every aspect of the business. Then, if you were to remove yourself from the picture without preparing your employees for the inevitability, they will begin to reevaluate if it’s worth staying employed at the firm.


A healthy exit strategy involves changing the mindset of the employee from ‘just an employee’ to ‘a key stakeholder’ at the firm. Inculcate independent thinking and ownership in your employees so that they won’t feel stressed at the prospects of change in leadership.

When a business changes hands, the experience can be formidable for employees who rely on you for instructions.


Employees Can Influence Your Company Valuation


You can bet your bottom line that prospective buyers will evaluate your employees by looking at their LinkedIn profiles and conducting in-person interviews. Their goal is to figure out if these employees will continue to keep the business operational when you’re no longer in the picture.


If they determine otherwise, the final valuation of your business and its assets will reflect that. It can be very difficult for a new owner to hire new employees who can handle the day-to-day affairs of running your business. It doesn’t make sense for an investor to buy a company that will run into the ground the moment they take ownership.


Fostering a Company Culture


One of the best ways to improve retention and employee longevity is to foster a productive work culture. The goal of the company culture is to align with company goals and values.

To create that valuable culture, you’ll have to open up the lines of communication across your organization, from senior leadership to sales staff. It is highly recommended to conduct employee engagement surveys so that your employee can send in their feedback to help drive the discussion.


Giving Recognition for a Job Well Done


There are many ways of recognizing your employees for their achievements. It can range from a simple pat on the back, an email appreciating their efforts, incentives in the form of cash, or just taking them out to lunch – on the company’s dime.


Serdar Kabul is one of the leading business brokers in New Zealand and has helped clients find deals that align with their expectations. You can visit the official website here to schedule a conversation with Serdar Kabul and the team.

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