How do I hand my overseas supplier relationships to a buyer without losing them?
Introduce the buyer to each supplier in person or on a call you attend, once the sale is firm enough to say so. Share the history, preferred contacts and any written terms, and tell suppliers that terms and payment will continue. Stay available to the suppliers for a transition stretch after closing.
Overseas suppliers often work with a person, not a company. Before you tell them anything, agree with the buyer when the news goes out, and prepare a short letter saying what is changing and what is not. Suppliers want to hear that orders, payment and quality standards will continue, and that you endorse the new owner. Offer to say so in your own words.
Make a profile for each supplier: who you speak to, what language and time zone work, how orders and samples move, past problems and how they were solved, payment habits and any informal arrangements. Share written terms with the buyer, and ask your lawyer whether any agreement needs the supplier’s consent to pass to a new owner.
Plan a staged introduction. Start with a joint call, then a first order handled by the buyer with you copied, and then step back. Consider a visit if the supplier is large enough to warrant it. Be honest with the buyer about any weak relationship, since they are better off knowing before closing. Ask your accountant how currency and prepayments should be handled at handover. Expect questions about who bears currency swings.
Key takeaways
- Agree timing with the buyer, then tell suppliers together, with a clear letter.
- Profile each supplier’s contacts, habits and informal arrangements for the buyer.
- Plan a joint call, a copied first order and a gradual step back.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to diversify your supply chain
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 03Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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