We do this for several reasons:
From the standpoint of fairness to a loyal employee it is the right thing to do.
The Manager will eventually learn of the impending sale, particularly if we aggressively market the property.
The Manager’s cooperation is a great asset in the sale process.
A good Manager who knows the store and its customers is a value added feature and makes the property more attractive than it would otherwise be to a future buyer who would need to find a new employee who would be starting out from scratch.
More often than not there is not a threat to the Manger. We have found that the new owner does not have a Manager that they are prepared to place at the store. Self Storage is a local business, so for national or regional buyers particularly, their existing employees would not be a fit. Only in rare occurrences, do the new owners themselves wind up operating the property from behind the counter.
The manager will more often than not become the buyer’s new employee. During the Due Diligence that the buyer undertakes prior to Closing both the manager and the prospective new owner will get to know each other.
We ask the owners to pay their Managers a bonus upon the sale, which works out well for the Manager particularly when they also keep their position with the new owner.
Despite al of this it is difficult for owners to agree with the idea of telling their employees. Any thoughts or ideas would be appreciated.
Jeff Supnick
Supnick Real Estate
www.supnick.com