Potential Acquisition Targets-What About the Employees?

By Tom Cobery
In June 19, 2015

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 tcobery@epicomm.org.

Tom Cobery

Dealing with the day-to-day needs of running a busy printing operation often leaves company leaders little time to plan for the future of their enterprises on their own. Tom works with chief executive officers and senior management executives in the Tag and Label Industry to develop growth opportunities through strategic transactions, new markets, or new service opportunities. Available for consulting on individual projects, he can also be engaged to serve as an Advisory Partner, helping executives guide their company into the future, serving as an impartial sounding board for ideas, and working with them to set the right course for continued growth and greater profitability. Tom’s personal experience as a Tag and Label Industry company president and chief executive officer, plus his extensive networking with other industry executives through his volunteer leadership activities with the Tag and Label Manufacturers Institute (TLMI) give him a unique perspective on the tough issues today’s company leaders face in this specialized segment. Companies engaging Tom will find his insight and independent advice an invaluable asset in helping them achieve their growth and profitability goals. More than a consultant, Tom Cobery wants to be your trusted Advisory Partner.

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