Call us on
0161 941 2426

Management Buyouts: HR and the Fitter, Leaner New Firm

Posted On: 23/07/2016

Every new owner wants to see their company to emerge leaner and meaner after a Management Buyout.  But are you making your job more difficult by ignoring your HR?

When a business changes hands, there’s always upheaval: panic over job security, financial restructuring, rebranding and legal headaches.  It’s a tense time for you and your workers.  But, after the dust has settled, you could be in charge of a fitter company and HR is increasingly seen as the key.

During an MBO, many new owners choose to assess the health of the firm and trim away the dead wood. It’s an ideal time to assess your workforce and see who is shining and who is underperforming.

In some cases, evaluating your workforce can throw up interesting trends; stress in one department driving down productivity, for example.  If you can see this you can assess whether these employees or departments need extra support.  Perhaps there are employees or managers who are simply not pulling their weight?  Getting to the heart of these troubles is just as important as getting the legalities of the sale right.

Your HR team is in the best place to assess the state of your workforce. But this must be done with diligence, care and compassion. It is important that you’re not seen as ruthless or you’ll encourage resentment and paranoia among the rest of the staff.  That’s not the best way to start a new venture.

Many employment consultants are warning that HR is all too often dismissed as a secondary concern during an MBO.  But, with TUPE regulations to consider and savings to be made, there are opportunities and dangers that only good HR can balance.

Get In Touch

What Our Clients Say

“"Just a quick note to say how pleased we are with the support that Katie has provided recently. She has been a massive help with the redrafting of our contract of employment and the provision of advice relating to our HR policies and procedures. "”

Chris Ellison, 4way Consulting Ltd

Read Our Latest Blogs

HR News Round-Up November 2018

Posted On: 27/11/2018

This year’s Budget was announced by Philip Hammond on the 29th October where he thanked the public for their hard work and promised that the end of austerity is in sight. Hammond opened;

Read More > >

Managing Cancer and Long-Term Sickness

Posted On: 21/11/2018

Undeniably one of the most difficult conversations you can have with a member of your team is one where they tell you they have cancer. No one can ever prepare for this first;

Read More > >

Subscribe to our HR News updates

Get the latest updates from P3 and great advice on how your HR can be improved.

To Top