What to do when company enters Formal Sale Process?

Posted by mpanase@reddit | ExperiencedDevs | View on Reddit | 13 comments

I joined a new company about a year ago as Team Lead for one of the 3 products the company has. B2B. It was a disaster, with essential features broken for 4 years and clients leaving because of it. I managed to finally sort it all out about a month ago: stable product, sensible processes, aligned team, ... Now I just learned that the company a Formal Sale Process... If I could stay with the same conditions and enjoy the stable product, that'd be great. Not sure what to expect from a Formal Sale Process, though. What to expect? What to keep an eye on to learn how it's shaping out? What would you do?

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13 Comments

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engineered_academic@reddit

Assuming you mean the company is for sale and it hast just started selling its product, start preparing your resume. Depending on how the acquisition goes there are going to be layoffs.

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mpanase@reddit (OP)

The company has been around for a couple decades.

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secretBuffetHero@reddit

I see. then you are being sold for parts. definitely update resume

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mpanase@reddit (OP)

I just don't want to admit it, now that I sorted damn thing out... At least I've got something good to put on the CV

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SheriffRoscoe@reddit

"2025-current XXX, Inc. Turned one of three major products from a disaster into an asset that YYY, Inc. waved to buy."

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Gunny2862@reddit

Keep calm and apply for other jobs.

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Advanced_Drawer_3825@reddit

The due diligence phase is the most telling. If the acquirer asks to meet the team, talk roadmap, and review the tech stack, they're buying a going concern. If they only ask about client contracts and revenue, they're buying the customer list. You already have a good story. Product turnaround in 12 months. Make sure whoever does the diligence walks away knowing that was you.

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explorespace9@reddit

I would have an honest conversation with the owners / promoters who are in conversation with the sale. They know they're selling something that has lived a long life. From what you say, it sounds like a distress sale and there isn't going to be any money coming. I would ask for recommendations, gather up your work outcomes and lean in to building your own company. Now that you have the time for it, building is extremely rewarding!

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jfcarr@reddit

I've been in a similar situation 3 times. It always ended with me and the rest of my team being laid off.

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AnAge_OldProb@reddit

How big is the company and do you have equity? If you have equity nice work you fixing the product probably helped the sale. Stick around and cash out after your hand cuffs are gone or stay if you like it. If you don’t particularly at a larger company. Ya polish up that resume

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mpanase@reddit (OP)

I've only been around for a year. I have a laughable amount of equity.

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AnAge_OldProb@reddit

I’d definitely polish your resume but I’d stick around through the sale, once it goes through you’ll get some money and likely have a boring couple of months at the new place.

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Mundane-Charge-1900@reddit

Uncertainty lies ahead. Outcomes range from everyone gets laid off, to acquiring company changes a lot about how you work and the products, to business as usual. Your product could be killed, driven into the ground, or thrive after new investment. If you’re not up for uncertainty, looking for a new job will give you the most predictability. I went through this once very early in my career. It was pretty terrible because the acquiring company had a very different culture. There was literally a row over us having to sign the new collect company’s employee handbook because it said we had to wear ties and slacks to work. And that was just the beginning.