How to Hold on to Key Employees (Article 4, Exit planning series)

Courtesy of SunbeltMergers.com
During a company merger, the devil is in the details. Identifying key employees and employment issues early on can facilitate a smooth deal. And a communication plan can help prevent, for example, top-producing salespeople from defecting to competitors, decimating the company's customer base, and affecting its value.

It's important to offer employees incentives to stay, but you also need to anticipate potential legal issues. Plan now to put in place your protections to prevent employees from disrupting your deal, both before and after it closes.

to read the full article... click here.

And be sure to follow the next installment of our Exit Planning Series, Monday is about "Inventory."

Exit Planning Series Article 3: Independent vs. Employee Status

The Big Question: Independent versus Employee Status

Are you workers independent contractors or employees? This is a compelling question, especially where the Internal Revenue Service is concerned. Every worker claiming status as a non-employee means payroll taxes and social security contributions that won't fall into the IRS's pockets.

Now many states are taking a closer look at the question, too. They are increasingly on the lookout for new sources of state revenue, including workman's compensation and unemployment insurance, both of which can be bypassed when a business uses independent workes.

to read the full article... click here.

And be sure to check out our Next installment in the Exit Planning Strategy series, Article 4: "How to Hold on to Key Employees" this Friday, March 25th.

Do You Have a Plan?

While it may not be visible itself, a positive plan for the futre of the business is key to actually moving toward a positive future. Business owners should be prepared to spend what it takes to generate new business, and they should take time to explore new possibilities for long-range success.

If the company currently has no mission statement, creating one will be evidence of he owner's enthusiasm for the future and for the ongoing success of the operation. If the company has a mission statement that no longer fits current conditions and needs, it may be time to revisit and revise the statement.

To write/rewrite your mission statement, here is a great article from Entrepreneur.com... "How to write your mission statement."

Now, prospective business sellers, be sure to watch my blog on Mondays and Fridays for the next several weeks, as I will be covering several issues to consider in the everyday running of your business. Issues that will help you prepare for an eventual sale, or at the least help you have a more profitable, well organized and forward thinking business.