Looking for Guidance Acquiring a Union Shop as a Bolt-On to a Non-Union Business

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February 25, 2026

by a searcher from University of Missouri - Robert J. Trulaske, Sr. College of Business in St. Louis, MO, USA

We're evaluating an acquisition target with a unionized workforce, and I'm looking for input from anyone who has navigated this before. A bit of context: our existing portfolio company is a non-union shop, and this target would be a bolt-on acquisition. We're currently structuring this as an asset sale, which adds another layer of complexity to how we think about the labor transition. A few of the questions I'm wrestling with: In an asset sale, does the buyer automatically inherit the existing CBA, or does that obligation reset? My understanding is that asset sales don't automatically transfer the union contract, but that the NLRA successor employer doctrine can still apply depending on how the workforce is retained. I would love to hear how others have handled this in practice. My preference would be to just offer them all jobs with our company directly, without bringing them in as union employees. Is that possible? We pay signficantly more than their current rates and have better benefits, so I'm not worried about the compensation aspect of it. Any recommendations on how to think about CBA review during due diligence would also be helpful. What are the landmines people typically miss? Happy to connect offline if anyone has direct experience with this. Appreciate any insights the community can share.
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Reply by a professional
from Loyola College in Maryland in St. Louis, Missouri, United States
Caution is warranted — I’d assume complexity until proven otherwise. My understanding is that an asset sale doesn’t automatically wipe away union obligations if workforce continuity triggers successor doctrine. And even if you can legally restructure, there’s still the practical reality of employee expectations and transition risk. A few salient factors: >how much of the workforce you plan to retain >whether operations remain materially similar >and what leverage actually exists vs. what’s theoretical From what I’ve seen, labor transitions can be less about “can we?” and more about “what risk are we underwriting culturally and operationally?” Also just noticed we’re both in St. Louis — always good to connect locally.
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