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Selling a NJ Business: You and Your Employees

 

Employees

Smart and savvy New Jersey business owners treat their essential employees like partners, not like “the help”. They recognize that when they sell the business, one of the key things that a prospective buyer is paying for is a trained and experienced staff. It has probably taken years for you to hire, train and prune your key employees for excellence, and this has value.

That said, how do you assure a buyer that your key employees will stay with him or her after the business is sold? There is no way that you can guarantee it, but you might want to consider giving your key employees a financial payout if they stay with the new owner for a stipulated period. The payout must be significant enough so that the individual would almost have to say yes, and the bonus would only be paid after the stipulated term of employment passed. This will significantly increase the saleability of your business as the prospective buyer will have increased confidence that he will have trained staff with which to run the business.Another issue that you may want to address is staffing before you attempt to sell the business and the importance of cross training. Most small businesses lack cross training; i.e., there is only one individual within the organization that can perform a particular job function. This gives employees the ability to hold the owner hostage in the event of a sale. You may want to begin cross training employees in the major areas. For example, if you employ a controller or full charge bookkeeper and also an accounting clerk, you may want to begin giving the clerk the training whereby he or she can do the full charge bookkeepers job.

Another issue that you may want to address is staffing before you attempt to sell the business and the importance of cross training. Most small businesses lack cross training; i.e., there is only one individual within the organization that can perform a particular job function. This gives employees the ability to hold the owner hostage in the event of a sale. You may want to begin cross training employees in the major areas. For example, if you employ a controller or full charge bookkeeper and also an accounting clerk, you may want to begin giving the clerk the training whereby he or she can do the full charge bookkeepers job.

Remember, your key employees are the primary reason why you have a profitable business to sell in the first place.

Contact Crown Business Brokers in Cranford New Jersey today for more information.

Crown Business Brokers Cranford New Jersey

 


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