How do I approach my manager about buying my business?
Start by deciding that you are really open to selling, then raise it privately as an invitation, not a request. Tell your manager it is confidential, give time to think and encourage them to speak to their own adviser. Avoid putting a price or deadline on the first conversation, since that turns curiosity into pressure.
The first conversation sets the tone for everything that follows. A manager who feels ambushed may say no out of caution or, worse, start looking elsewhere. A manager who feels respected is more likely to think the idea through. Do some groundwork first so that you can speak plainly and calmly.
Check your own readiness first
Before you speak, be clear with yourself about why you want to sell, how soon, and what you would need from the deal. Ask whether the business can run without you and whether this manager is the right person. If you are still unsure, quietly testing the market may help you decide.
Choose the setting and say it is confidential
Pick a private time away from the shop floor. Say clearly that the conversation is confidential, and ask the manager to keep it so. Word travels fast when staff sense a change, and an unsettled team can hurt the business you hope to sell.
Frame it as an invitation
Say that you are thinking about the future and wanted to ask whether the idea of owning the business ever appealed to them. Make it easy to say no without hurting the working relationship. Resist quoting a price, a timetable or terms, since those belong later and with advisers present.
Give time and point them to an adviser
Let the manager take time, and suggest they talk to their own lawyer and accountant, not yours. That protects them and protects you from later claims that they were not properly advised. If the answer is yes, the next step is usually what a management buyout is and how the process unfolds. See also telling key employees before you plan your exit.
Related reading
14 pages on the same subject, grouped by topic.
Selling
- Expert answerDo I need key employees on side before planning my exit?
- Expert answerWhat is a management buyout?
- Expert answerCan I sell my business to my employees?
- Expert answerCan I quietly test the market without deciding to sell my business?
- Expert answerHow does key employee flight risk affect a business sale?
- Expert answerHow do I reduce owner dependence before selling?
- Expert answerHow can I sell my business gradually to a key employee over several years?
- Expert answerCan I step back from day-to-day work while deciding to sell?
Succession
- Expert answerShould I sell my business to my employees?
- Expert answerWhat are my options for exiting my business?
- Expert answerHow does key person dependency affect the sale of my business?
- Expert answerCan my café manager buy the business over time?
- Expert answerHow do I hand my janitorial company’s site walk-through habits to my manager?
- Expert answerHow do I train a manager to run my car wash when I retire?
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentAdvice for succession planning - Articles and tools
- 02Business Development Bank of CanadaGovernmentWhat is succession planning?
- 03Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 04Canadian Federation of Independent BusinessResearch dataSuccession Tsunami: Preparing for a decade of small business transitions
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