HTSS159 - What to expect when private equity buys your employer in sales (Part 1) - Scott Sylvan Bell
Private equity and your sales role changes
Private equity is buying small, medium, and large businesses. These roll-ups are being fueled for revenue and future values of the companies. The company you work for could be in the hands of an owner you know one day and then its sold the next. You have an owner you know one day and then you are owned by a faceless group the next. The first thing they say is “nothing will change”. You need to know this isnt true.
What to expect from new company owners with private equity
When a company is bought you will have major changes coming your way. You can expect these changes to happen quickly. Here are a few things to expect:
Management changes in sales when private equity buys your employer
When the company you work for is bought by private equity management will change. You must know there will be problems behind the scenes. The new managers need to show their power and the old managers will have to fight for positions. You will be left holding the bag and answering to new people.
The previous owners you answered to no longer can help you
You may feel helpless when the "old owners" cant do a thing to help you. The problems you used to be able to address cant be fixed. You will get empty promises, at the end of the day the old owners are there for the transition only.
The new owners and private equity
When the new owners and managers step in preparation for rainbows and sandcastle stories. Everything will be shown as magnificent. The new owners want to size up the team to see who should stay and who should go.
The new new owners under private equity
The valuation of the company will change and will attract new buyers. It's not uncommon for companies to be bought and sold a few times in a year to get to the next valuation.
You have decisions when the company you work for is bought by private equity
If you are in sales you should always prepare for a departure from the company you work for. It doesn't matter if it's a better opportunity or for you to be fired.
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