When selling to a private equity firm, it is crucial to keep all good employees. However, determining the time to tell your staff is a delicate process.
After fully executing the Letter of Intent, it is critical to get your associates onboard. The buyer will require all associates to sign Letters of Employment to detail future compensation and benefits packages. Often, the seller will give a loyalty bonus to Associates to encourage them to remain at the practice.
Getting the office manager involved is recommended because they can assist with due diligence, and they also may help when it is time to tell all other staff members.
The seller should inform the remaining lay staff once they have a finalized Asset Purchase Agreement and an imminent sale. Usually, two to three weeks before closing, the buyer will set up integration calls with the entire staff to discuss employment expectations, compensation, and benefits.
The private equity firm’s goal is to retain your team to keep the practice running smoothly during and after the sale. As a result, nearly all corporations will ensure they earn the same compensation, and often, their benefits packages are even better.
When TPSG facilitates the sale, we work with all parties involved to safeguard the smoothest transition possible.
Dr. Bill Crank
East Coast Territory