Should my engineering firm’s long-time clients meet the buyer before I sign?
Usually not before a serious buyer has signed a confidentiality agreement and you have agreed on terms in principle. Clients then meet the buyer on your timetable, in person, with a clear message. Meeting too early can unsettle them and spoil your position.
Engineering clients buy on trust in specific people. A buyer meeting them can reassure or alarm, so the timing needs thought. Early introductions risk news spreading, staff hearing second-hand and rivals using the uncertainty to approach your clients.
A sensible order is to qualify the buyer first, get a confidentiality agreement signed and settle the main terms. Then decide which clients to introduce, starting with the ones whose loss would hurt most. Ask your lawyer whether your purchase agreement should make closing depend on certain clients staying.
Prepare each meeting. Tell the client in advance what is happening, explain why you chose this buyer and show how projects in progress will be looked after. Stay in the room for the first meeting, then step back as the buyer takes over. Some buyers will ask to speak to clients before they sign. If so, offer a short, supervised call with a few trusted contacts rather than open access. After closing, keep contact going through a transition period. A good handover plan matters as much as the first handshake. Ask each client afterwards how the meeting felt, and adjust the next introduction to match.
Key takeaways
- Qualify the buyer and sign a confidentiality agreement before approaching any client.
- Introduce the most important clients first, in person, with the seller present.
- Ask your lawyer whether the deal should depend on key clients staying.
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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 conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentHow to minimize negotiations when selling your business
- 03Business Development Bank of CanadaGovernment7 steps to increase your business’ value—before you sell it
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