Should I tell my catering clients before I list my company?
Usually not before you list, but plan what you will say. Tell clients only when a buyer is serious and a confidentiality agreement is signed. Your largest repeat clients and booked events deserve a personal conversation from you, not news that reaches them through gossip or an online listing.
A catering company lives on relationships, so word travelling early can hurt. A client planning a wedding or a corporate year-end may worry about who will actually cook and show up. Decide which clients are most exposed, and write down what each one has booked and what deposits you hold.
Before listing, prepare a short script. It should say that the business continues, that the team stays, and that you will introduce the next owner yourself. If a buyer asks to speak with key clients, agree on timing first, and make that step late in the process, after the buyer has shown real commitment and the paperwork is moving.
Ask your lawyer what your client contracts say about a change of ownership, since some may need consent. Keep a clear list of upcoming events so a buyer can see the pipeline. Staff usually hear before clients do, so decide what they are told and when. One chatty cook can undo a careful plan, and a client who hears it secondhand may feel dropped. Offer to stay involved through the first events after closing, and ask the buyer to keep the same menus and contacts for a while.
Key takeaways
- Hold the news until a serious buyer has signed a confidentiality agreement.
- Tell your biggest repeat clients yourself, in person, with a script ready.
- Have your lawyer check whether client contracts need consent on a sale.
Related reading
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Selling
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaIndustryHow to sell your business
- 02Business Development Bank of CanadaGovernment7 steps to increase your business’ value—before you sell it
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