M&A Talk: #1 Podcast on Selling a Business A Seller’s Guide to Employee Agreements
Jun 17, 2025
Join M&A attorney Kyle Lawrence from Falcom, Rapoport and Berkman LLP as he dives into the complexities of employee agreements when selling a business. He discusses the timing of employee announcements to avoid backlash and the intricacies of maintaining or rewriting contracts. Kyle also sheds light on handling employee benefits, stock options, and the importance of due diligence in M&A transactions. Learn how proper communication and legal guidance can impact business value and ensure a smooth transition during the sale.
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Timing Employee Sale Announcements
- Be strategic about when to tell employees about a business sale to avoid losing key staff.
- Announcing too early or too late can cause employees to leave, harming the business and the deal.
Asset vs. Stock Sale Contracts
- Understand the legal differences between asset sales and stock sales for employee contracts.
- Asset sales require new employment agreements; stock sales generally keep existing contracts intact.
Use Specialists for Complex Employee Law
- M&A attorneys know employee-related issues but bring in employment law experts for complexities like WARN Act or ERISA.
- Knowing the limits of your expertise and collaborating saves costly mistakes.