Selling Your Business - Checklist Item 5. Staff schedule with positions, length of service, ages and Salaries, include owners, indicate key staff and any vacancies
Buyers will want to know staff numbers, roles, lengths of service and so on. In any business sale and purchase the staff are valuable assets and must be given a major consideration.
Of course any vendor will be reluctant to release detailed information on staff, so the Staff Profile forms part of the confidential Information Memorandum which is only released once a Non Disclosure Agreement has been signed by the prospective buyer. Even then some vendors may prefer that personnel are not named so initials can be used or even loose headings such as Staff Member 1, Staff Member 2 and so on.
The personnel list and description gives a buyer additional information in assessing whether or not they need to employ a new manager to replace the owner or if they (the buyer) needs to replace the buyer themselves. Any privately owned, vendor-run business with a good second tier management will be of strong interest as the buyer has further comfort that the business can prosper under new ownership.
So, whilst a comprehensive list of staff may not be the most essential documentary part of a business profile, it should not be neglected, nor should it be something that is poorly prepared.
February 12th 2015
Keith Green - selling businesses and advising SME business owners since 1997 and still enjoying it.