It’s Business, And It’s Personal

Working with employees when selling a business

On Behalf of | Jul 25, 2017 | Buying & Selling Businesses |

People in North Carolina who are considering selling a business may be concerned about when and how to inform employees. While the business owner might want to make sure that employees are taken care of, it is important to not mention the potential sale if it is not yet a sure thing. Doing so could drive away key employees and weaken the business if the owner then decides not to sell. If the business must be sold by a certain date for some reason, the owner might want to inform the employees of this date.

It may be possible to negotiate with the buyer of the business to protect the employees. For example, a business owner might sell the business for less than its valuation if the owner agrees to retain employees. If it is unlikely that the buyer will be able to do this, the owner should let employees know as soon as possible so that they can begin to make other plans.

For these employees, or for employees who decide to move on, it is possible to offer support. For example, the owner can offer recommendations. It is important to make sure the employees get the vacation time, sick leave and any additional compensation they are due. An owner should also make any other resources available as well.

A person who is interested in buying or selling a business might want to work with an attorney throughout the process. Whether or not the person is experienced in the process, there are a number of potential pitfalls for both buyer and seller. For example, there could be lien on some assets or another issue about which a buyer is unaware. A seller may be unaware of the legal language needed in documents to achieve the goal the seller hopes for.