Successfully selling a company has much to do with timing. For numerous entrepreneurs, it’s the high-stakes end game where they cash out and gain the benefits of their efforts. At a specific point, when both buyers and sellers are striving to seal the deal, settlements can move very rapidly. If you’re the seller, this is not the time to discover unanticipated issues in your organization.
Distressingly frequently, these problems relate to work. Inattention to employment problems can have a significant effect on offers– from avoiding closings and decreasing the deal worth to modifying the deal terms or considerably restricting the pool of prospective buyers.
Poor compliance, lack of policies or problematic practices indicate possible liability direct exposure or costly policy modifications and worker retraining– all of which can cheapen your company.
Such problems typically can be fixed well in advance with a little forethought and legal guidance. It is essential to get your work ducks in a row long before you begin preparing your exit.
What follows is an overview of the three main categories of work problems that can delay a sale or thwart. For the many part, these presume a property sale, but might vary when it comes to a stock sale.
Without a doubt the most significant problem is basic employment law compliance. This means producing strong work policies and practices that are documented, in location and operating long before you pursue an offer. The crucial location is wage and hour issues– timekeeping and payroll practices, worker category problems (worker vs. independent specialist; non-exempt vs. exempt), meal and rest periods, PTO policies and payments at termination.
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.