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When a centre changes hands, the worst job for the seller is
when the time comes to sit down with the staff of the centre
and tell them that there will be a change in ownership. These
may be people that you have known for years, people who
have become friends.
Occasionally a centre owner will choose to inform their staff
prior to or during the sales process but this is the exception
rather than the rule. In my experience, the transitions in these
circumstances have been relatively smooth however most
owners choose not to tell staff until there is an unconditional
agreement in place.
For those owners, those weeks or months of discreet
negotiations and due diligence have been the secret that you
have kept from your staff and now is the time to tell all – ‘oh,
and by the way, here is your notice of termination’.
The reality is that the purchaser of your centre is just about
always going to want to keep your staff in place. Continuity is
vital for a successful transition and all purchasers are aware
that settled staff are the best advocates and greatest asset
for a centre. The exception to this is if there is significant
overstaffing in the centre – this can often make for a difficult
transition as the new owner will need to rationalise staff
numbers.
Overstaffing can also have an effect on the desirability of
the centre to a new owner. They will know that there may be
redundancies which can have a negative effect on the owner-
staff relationship and could take some time to rebuild.
What is the ideal transition for staff? When they are informed
of a sale, the first thing they will feel is uncertainty. To alleviate
CHILDCARE CENTRE
TRANSITIONS
BY ROGER BROCKELSBY
About the author
Roger Brockelsby is a LINK Childcare Sales
Specialist. Roger can be contacted on
027 919 5478 / 0800 225 999 or email
Roger.brockelsby@linkbusiness.co.nzthat, as soon as they receive their redundancy notices, the
new owner should be on hand with their new employment
contracts – keeping any ongoing uncertainty to a minimum.
Note, as well, that there are different rules in place for what
are termed ‘vulnerable’ staff – cleaners or kitchen hands.
For this group of workers there are rules in place to ensure
continuity of employment with the new owner.
QUARTER PAGE
December 2017
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