Legal Blog

M&A Nugget: Retaining Key Employees

A key condition of many business purchases is the buyer’s ability to retain a key employee.  The dilemma is when to notify the key employee of the business sale.  Notice to the employee too early could result in the employee jumping ship.  Whether the employee is restricted by a non-compete agreement becomes crucial.  Notifying an employee late in the game could result in the employee leveraging the situation, making demands for greater compensation and benefits.  From a purchaser’s standpoint, if there is a critical key employee, the purchase agreement must state that a condition to closing is that the employee stays.  The purchaser and the seller should then agree on how and when the employee will be approached about the sale.






If you have any questions about this or any other M&A issue,
please contact Glenn Solomon at or 443-738-1522.


ABOUT GLENN D. SOLOMON | 443-738-1522

Glenn D. Solomon is a principal at Offit Kurman and has provided counsel to businesses and business owners for more than twenty-five years. He has extensive experience in the purchase and sale of businesses, structuring ownership agreements, and advising companies in financial distress.









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