It is likely that key employees will already be bound by an employment agreement, confidentiality agreements and noncompetition agreements. These agreements may discourage these employees from voluntarily leaving their current employer. These agreements should be reviewed to determine how and if they apply in the context of sale of a business and whether they allow for the desired result in the transaction.
Our Chicago corporate lawyers will review agreements and determine whether the circumstances dictate that the seller and/or buyer ought to consider offering key employees new employment agreements, stay bonuses, separate severance arrangements, or other contractual incentives to ensure the employees remain for an adequate and necessary time period. The terms of retention agreements, the amount of consideration, and the timing of any payments will be dictated by the circumstances and the buyer and seller may negotiate on which party will take on the responsibility for the retention payments.