North Carolina business owners may spend a lot of time preparing their books and refining marketing strategies. While these tactics may help the company get a higher price when it is put up for sale, other issues may also need to be addressed. For instance, if may be worthwhile to review the company’s employee handbook. By showing that a company has a written policy, it is more likely that it has generally followed proper employment law procedures.
If employment laws have been violated or not fully followed, employees may file claims alleging systemic issues within the organization. In addition to paying employees if their suit is successful, the matter could gain mainstream media attention. Companies should also make sure that they have properly classified their workers. If workers are not properly classified, it may result in significant monetary penalties for the new owner regardless of how large the business is.
Companies that have agreements with a union may be limited when it comes to selling. At a minimum, the National Labor Relations Act requires management to notify the union about the transaction. This may provide the union and management the opportunity to come to an agreement regarding the potential sale. Adding a successor’ clause to a labor agreement may make it easier to sell a company at any time.
Generally speaking, business transactions are complex events that may take several weeks or months to complete. As there are many issues that business owners may need to consider during the sale process, it may be best to complete it with the help of an attorney. An attorney may be able to review purchase or other agreements in an effort to help a business owner potentially sell the company in a timely manner for the best possible price.