Duration. Although a period of 3 to 6 months is often mentioned, there are no hard and fast rules on this matter.
It’s important to note that the buyer often underestimates the time it will take to become fully operational. Their concern is likely that they won’t be able to establish their authority while the former owner is still present. The well-known saying about “two roosters in one coop” is often cited to justify a very short transition period.
Emotional. However, the seller generally wants to give the buyer a helping hand so that the business continues to thrive. In most cases, this desire is selfless and sincere. The image of the boss clinging to power should not be generalized. To avoid this pitfall, there is a simple solution: the buyer must be able to decide at any time to end the transition period early or to reduce the seller’s involvement.
It’s worth noting that the buyer sometimes makes psychological missteps during this phase, likely by trying to impose their ideas too quickly. Before disrupting established routines, it’s important to fully understand how the business operates. It is therefore in the buyer’s best interest to start by listening and learning. Provided this learning phase does not drag on, it will not undermine the buyer’s authority—quite the contrary.
Compensation. Some buyers believe that the transition support should be provided free of charge given the purchase price paid, particularly when a deferred payment coincides with the transition period.
However, we believe it is important to clearly distinguish between the purchase price and compensation. All work deserves compensation, and the buyer will have greater freedom to discontinue the support if they are compensated.
Clarity. The objectives and roles of each party must be clear. The seller must understand that their goal is to leave the business and thus make themselves dispensable. Their role will evolve from decision-maker to coach. By offering advice—behind the scenes!—to the buyer and standing by them in dealings with the staff, the seller maximizes the chances of success.
The seller must not forget that it is the buyer who will have to take responsibility for decisions. They will therefore take care to express their opinion while leaving the final say to their successor.
The buyer’s goal should be to become a credible and reliable leader as quickly as possible. They will listen to the seller’s advice and consult with them privately when in doubt. Periodic coaching sessions can be helpful.
The buyer will need to grow into their role in order to gradually assert themselves. Support can therefore be provided in gradually decreasing stages.
The practical details (duration, schedule, type of services, compensation, etc.) should ideally be set forth in a service agreement signed at the same time as the business transfer.
Although often overlooked, a well-managed support period helps the buyer get up to speed and allows them to benefit fully from the seller’s experience.
