This article are provided for information purposes only, and are not intended as legal advice.


Buying a business – staffing

November 13th, 2008

Is there a management team?  Do they know about the sale of the business?  Will they stay after the sale?  How old ar they?  Are they close to retirement or will they continue with the new owner for years?  What does the management team think of the sale,  is this a positive thing?

 

Are there relatives in the business?  What position are they in.  I saw a CNC shop and the vendor did not tell the prospective owner that 75% of the staff were relatives with different last names who probably would not stay after the sale was completed.   Once this was discovered in due diligence, the prospective buyer abandoned the sale beause he did not know what he was buying if the labour force disappeared on closing.

 


Filed under: Buy a business — Gary Landa @ 11:01 am


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