Selling a business: how do you inform your employees?

Are you an entrepreneur looking to sell your business? There are many reasons for selling a business. Whatever the reasons for the sale, the fact is that when such an action is carried out, it is imperative to inform the employees ! 

Note that in the case of a company with fewer than 250 employees, failure to notify employees of the sale of the business may result in the payment of a fine corresponding to 2% of the sale price of the structure.

But more than the financial aspect, it's also an action that respects its employees.

In order to guide you through this process, today we focus on the rules governing the transmission of information to employees when selling your company!

Selling a business: deadline for informing employees

In the first instance, the sale of a company must be announced to its employees in advance, and certain legal information deadlines must be met.

Thus, any decision to sell your company must be notified to your employees at least two months before the deadline corresponding to the date of signature of the sales contract.

It should be noted that employees have priority when it comes to making a purchase offer. If no employee expresses an interest in buying the company, it can be sold before the two-month period has expired.

However, a certain number of rules relating to the communication of information to employees must be observed.

Rules governing the communication of information to employees

Secondly, the communication of information concerning the sale of a company to employees must be carried out under the prism of several clear rules.

As a result, any means of communication can be used to publicize the sale of your company.

However, it is necessary to guarantee that the information will be received on a precise date determined in advance.

To ensure this, a number of specific actions can be taken, including :

• Organizing an information meeting on the sale of the company, with all employees. In this case, an attendance register should be made available for employees to sign, to make sure that all employees are informed.
• Sending a registered letter with acknowledgement of receipt, detailing the sale of the business
• Service by a bailiff
• Or, lastly, to hand-deliver a document summarizing the sale operation to employees in exchange for a receipt.

Mandatory information to be sent to employees concerning the sale of a company

Finally, you need to provide your employees with a number of compulsory items of information.

This information is as follows:

• It is essential to emphasize the employer's intention to dispose of its business assets or even all its securities.
• The opportunity for employees to present themselves as buyers
• Inform employees of their obligation of discretion regarding the proposed sale of the company.

Apart from this information, which must be provided to employees, the employer is not obliged to provide employees with information on the company's financial and accounting situation, or on its strategic direction.

In conclusion, before selling your business, it's important to be well informed about the rules governing such an operation!