Sales Process Step 11: Transition Period
This typically involves a period of cooperation in which you will assist the purchaser with some training and in effectuating a "seamless" transition. During this period you will be involved in introducing the buyer to all key relationships and transferring any proprietary information needed to successfully operate the business. This is a very important piece of the entire process and the time required varies from business to business and market to market.
The length of the "training period" usually depends upon the complexities of the business and typically lasts 2 to 4 weeks following the closing. Beyond that period of time, the seller is usually compensated for training either as a consultant (independent contractor) on an hourly basis or as a salaried employee. During the initial training period, the seller's main objective is usually to maintain some continuity for the employees, suppliers and customers.
Predetermine the Guidelines
Determine the guidelines of what is expected early in the process. The number of hours, responsibility, reporting procedures, etc., should be detailed, understood and agreed upon before the close of escrow.
