Employees are In-Valuable

Effects on Employees in the process of the Business Sale.

From a Business Brokers Point of view !

When selling a business, the employees are a very important comp-onent of what we are selling.This is challenging task from a Business brokers perspective.

  • As they constitute a large part of both the asset and the process. In fact, in most business sales the employees are the key to the owner’s concerns and thinking.
  • They buyer is also extremely concerned and interested in the employees ….


So we need to ensure that we can:-


  • Know who the employees are.
  • Know how important each of them is to the smooth running of business.
  • Understand the form of employment agreement that exists between owner and staff.
  • Comprehend the entitlement and liabilities that come with the employees.
  • Find out if there are any outstanding issues between employer and employee.
  • Manage the process, so that employees don’t leave the business – or the business operation is not destabilized.
  • Make sure that the buyer (or seller) don’t get a “nasty surprise” with employee entitlements.

When it is too late?

  • We need to prepare the business for sale, the study of the HR and employment side of the business is a key factor in ensuring that a business will sell for maximum value.
  • If there is a key employee in the business and that the business cannot function at present levels of performance without that employee – you need to address that issue straight away.
  • A good broker will ensure that all of the “roadblocks”, and potential “deal breakers” are removed at the outset, and will avoid any last minute problems and challenges from arising.


Types of Employees.

How many types of employees can you identify?

  • Full time.
  • Casual.
  • Full time/Permanent Casual.
  • Contractor.
  • Sub-Contractor (are there potential “deemed employee” potential liability issues for the business for subcontractors that are not incorporated and/or not engaged on a non-exclusive, executed agreement basis ?)
  • Consultant.
  • Equity Partner – are their rights specified in an agreement or via voting rights?
  • Shareholder – minor – are their rights specified in an agreement or via voting rights?
  • We need to identify how many employee types the business has.
  • We need to do this to answer the questions that the Buyer and Sellers will have about.



When Buying or selling your Business ,your employees deserve to be considered fairly.






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