company for sale 3

[Zlotnik]

Hi,
I recently figured out that the civil engineering company where I am working, is on the market for sale. What can I expect in the future? If there are some threats I should to be afraid of? Please let me know if someone has to be in the same situation. Thank you.

 

[Senselessticker]

Not to sound condescending to your question, but I believe ALL companies are always for sale. Most employees never know the difference or when it will happen. This is especially true for small companies (secrets are kept tighter and longer by execs). If you work for a small company, I would assume your company is on the market 24/7, and ownershipe could change hands at anytime, anyday. Larger companies tend to have rumors (sometimes for years) about being sold to another company before it actually happens.

 

[Zlotnik]

That right, they trying to keep it in secret, but I saw broker ad on the internet ….

 

[Ashereng]

The company I was with 3 years ago was bought by a major international company. Nothing really changed for me. I still got paid. I was doing the same work. I was still in the same office. I did get new business cards. I didn't get a new company shirt though.

If the new owner decides to cut everyone's pay by 20%, then you need to do something. That could happen with the existing owners too.

It really comes down to the situation you are in.

I eventually left the company about 6 months later, but it really didn't have anything to do with the new owners. I had a better offer elsewhere.

One of the reason a new owner would buy your current company is that he/she believes in it, that it will be profitable. He/she has strong reasons to keep things the way it is (keep the people because people are the true assets of an engineering company).

 

[boffintech]

Let's hope the new owner doesn't require the use of proper grammer and punctuation.

 

[waross]

Given the international nature of this forum, Zlotnik's day to day work may be in Egyptian and English may be Zlotnik's fourth language. Probably not, but let's not get personal. Please.
In regards to engineering capability, I understand that the great wall of China and the pyramids were built without a word of english being spoken by people who were not even aware of english grammer or punctuation.
respectfully

 

[MikeHalloran]

Nor were they aware of English grammar, or spelling.


Zlotnik, just do your work. When it's time to worry, your boss will tell you.




Mike Halloran
Pembroke Pines, FL, USA

 

[Zlotnik]

Sorry, unfortunately English is my third language…
Btw English was not an obstacle for to get an PE license within one year being in US.

 

[HgTX]

There was something on the news recently about being in a company that's being sold. Their advice was basically to keep your eye out for someone you think will land on their feet, and tie yourself as closely as you can to them.

Mind you, that requires a level of ability to play office politics that is not a prime engineering skill.

Hg

Eng-Tips policies: faq731-376

 

[SomptingGuy]

20 years ago I used to work for a company called Lucas CAV. They made diesel FIE equipment. I've lost count of the number of owners of that business - at least 4 or 5. Now it's currently owned by Delphi - Delphi Diesel Systems. But it's the same people sitting in the same offices doing the same work for the same clients.

 

[IRstuff]

There was a similar comment made about rice paddies in the Vietnam War. The US and Vietcong would alternate possession and control of various parts of the country and the farmers would simply remember who to cheer for when the changes occurred.

In general, there are lots of different potential outcomes, none of which are under your control and might have occurred regardless of a takeover:

> No changes whatsoever, business remains on its previous course, upward or downward. (been there, done that)
> New owners don't know squat about the business and run it into the ground. (been there, done that)
> New owners decide to move the company to improve synergy, etc. (been there, done that)
> New owners are actually competent and actually grow the business. (been there, done that)

You simply need to pay attention to what's going on and make decisions that are most appropriate for you. In some cases, there are nice retention bonuses that are worth waiting for. ;-) (been there, done that)

TTFN

 

[ewh]

IRstuff,
You neglected to mention the scenario of new owners pillaging the company, driving the stock price down to next to nothing, then selling the remains. Been there...

 

[FACS]

Most people/firms that buy a business do so because it is already successful. Most of the time you have nothing to worry about.

If changes are made, it will be at the top.

Charlie

http://www.facsco.com

 

[IRstuff]

Too glib. Many of the "changes at the top" ripple down as does the brown stuff.

TTFN

 

[LHA]

Some responses to others' comments follow. Basically, if you are good at what you do, you should be excited, or at least not worried. If you are a substandard worker, be concerned.

Ashereng (Petroleum)
"One of the reason a new owner would buy your current company is that he/she believes in it, that it will be profitable."

FACS (Mechanical)
"Most people/firms that buy a business do so because it is already successful. Most of the time you have nothing to worry about."

Another reason is that they DON'T believe it is viable in its niche, but want to get the client list before someone else does. This happens often. If this is the case, the plan is to probably phase out your existing operations, and morph their client-base into the other company. If this is the case, all employees and material holdings not carrying their share will be released. But worthwhile employees and materials will be retained. And stellar employees will probably be offered better positions.

SomptingGuy (Automotive)
"...I've lost count of the number of owners of that business - at least 4 or 5...But it's the same people sitting in the same offices doing the same work for the same clients."

The same case applies to my former employer, USFilter. While I worked there it was sold twice (in other words, I worked for three "different" bosses. Nothing changed, except some minor procedural stuff. Since I've left, it has had at least two new owners that I'm aware of. I'd bet, again, that nothing's changed, except some minor procedural stuff.


Remember, amateurs built the ark...professionals built the Titanic. -Steve

 

[IRstuff]

re ewh's posting. One similar situation is buying a company to eliminate a competitor. Haven't been on either side of that one, but I've heard it done.

TTFN