Customer notification
Customer notification is telling a business’s customers that ownership has changed — usually timed close to closing day, coordinated between buyer and seller, and covering who to contact going forward and how their information is being handled. Handled badly, it is the fastest way to lose the customers the buyer just paid for.
Customers who hear about a sale from a competitor, a rumour, or a confused invoice tend to react worse than customers who hear it directly from the people they already trust. The notification is usually planned well before closing even though it cannot go out until the deal is actually done — a sale that leaks early can unsettle the very relationships the notification is trying to protect.
What a notification usually needs to cover
- Who owns the business now, and whether the operating name or terms are changing
- Who to contact for orders, service and billing going forward
- Continuity — same staff, same location, same hours, where that is true
- How the customer’s account and personal information is being handled through the change
Why timing and sequencing matter
Key accounts and long-standing customers are usually notified personally, often by the seller with the buyer present, before a general notice goes out to everyone else. A large customer who learns about a change of ownership from a mass email rather than a phone call reads it as a downgrade in the relationship, whatever the actual terms of the deal.
Sources
This definition is checked against primary sources. Links were last confirmed on the dates shown.
- 01Office of the Privacy Commissioner of CanadaGovernmentThe Personal Information Protection and Electronic Documents Act (PIPEDA)
- 02Treadstone LawLegal commentaryBuying & Selling a Business
- 03Canada Revenue AgencyGovernmentSelling a business
Deavo is an advertising and listings platform, not a brokerage, law firm or valuation firm. This page is general information, not legal, tax, accounting or valuation advice, and rules differ by province. Confirm anything you rely on with a qualified professional before you act on it.