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.
ABOUT GLENN D. SOLOMON
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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.
ABOUT OFFIT KURMAN
Offit Kurman is one of the fastest-growing, full-service law firms in the Mid-Atlantic region. With over 130 attorneys offering a comprehensive range of services in virtually every legal category, the firm is well positioned to meet the needs of dynamic businesses and the people who own and operate them. Our ten offices serve individual and corporate clients in the Maryland, Delaware, New Jersey, and Northern Virginia markets, as well as the Washington DC, Baltimore, Philadelphia, and New York City metropolitan areas. At Offit Kurman, we are our clients’ most trusted legal advisors, professionals who help maximize and protect business value and personal wealth. In every interaction, we consistently maintain our clients’ confidence by remaining focused on furthering their objectives and achieving their goals in an efficient manner. Trust, knowledge, confidence—in a partner, that’s perfect.
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