Potential Acquisition Targets-What About the Employees?
In this posting I continue the discussion of issues that an acquiring company needs to address to get a better understanding of the potential acquisition target-before a deal is finalized. I pulled much of this content from an article written for The International Reprographic Association (IRga) newsletter, where I discussed a few of the issues and presented my thoughts.
If there are certain employees of the target company that you really want to keep, do not assume that the person/people will automatically stay under new ownership. Even long-term employees may decide that the ownership change is a good time to move on, perhaps to a competitor. Discuss the situation with the target company’s owner and make attractive offers to the employees you want to keep before the deal is closed.
If you are contemplating having certain employees sign Non-Competes, you need to discuss the particulars of the Non-Compete with them, especially sales personnel, beforehand. Non-Compete issues are very sensitive and may be foreign to the employee. You need to walk the employees through the rational for requiring them to sign one and it is best that you get these people on board before the deal is closed. You need to minimize any post-closing surprises.
More questions or issues will be addressed in the upcoming months. If you want to chat, give me a call at 201-523-6326 or Email me at email@example.com.