Stock Purchase Deal (majority buyout) with Owner / Executive staying on?
October 12, 2023
by a searcher from Emory University in Marietta, GA, USA
Hi, has anyone done a stock purchase deal with the Owner / Top Senior Exec staying? How many execs did you tie up into employment agreements and non-competes? How did you choose which ones - did you do based on salary? What were the key things you put in the employment agreement around 1) termination, 2) duties and responsibilities, 3) decision rights? What are you most nervous about for the go forward Company with the Owner / Senior Exec remaining in place?
from The University of Chicago in Chicago, IL, USA
2) What do you mean by "staying"? Is that ownership, employment, or consulting?
3) For a small company, getting executives tied up with an employment agreement has some pluses, but in most cases, it has major negatives. Happy to discuss.
4) If you are planning for SBA financing, I do not know how you can have owner "stay" beyond 12 months.
from Massachusetts Institute of Technology in Seattle, WA, USA