Selling and Closing
In this post, we’ll explore a few key employment law considerations for business owners considering the sale or closure of their business. This will be followed by Part II, in which we will examine some of the employment-related legal issues that should be reviewed when purchasing a business.
This post focuses on businesses with non-unionized workforces. Unionized workplaces have their own distinct issues that must be addressed when buying or selling a business and a lawyer should be consulted regarding those as well.
Selling Your Business
Selling your business can be a great way to reap a reward for all the blood, sweat, and tears you put into its growth and development. For many business owners, the sale of their business is also a critical component of their retirement plan. Unfortunately, many fail to consider the very substantial statutory and common law entitlements that their employees may have if terminated when the business is sold. A previously enticing sale price may no longer make a lot of sense if you will owe months or years of pay to some or all of your employees on closing.
So what can a business owner do? Consult with an employment lawyer as early in the process as possible! You’ll still want a corporate lawyer to close the deal, but employers who fail to consult with an employment lawyer on the sale of a business do so at their own peril.
While offers do get made unexpectedly, many business owners start considering a sale months or...
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