Thanks for the tag ^redacted‌ - As many have described here, many forms of Key Man Risk exist - So, we can not provide a specific response without an understanding of the specific risk - A general model is to transform Key Man Risk into Key Man Partner - In the case where the Key Man is the owner/CEO, very early in the process, we discuss our Stewardship Manifesto, which tends to engage the Owner/CEO in the continuation and growth of their legacy. You appear to be concerned about multiple skilled professionals that are critical to the manufacturing operation, rather than an Owner/CEO. Alignment is the key ingredient. In a similar manner that the Stewardship Manifesto creates alignment with the Owner/CEO, alignment creates a healthy relationship with the employees. The employees have remained loyal for one or more reasons. You must understand those reasons. Beyond maintaining those reasons, talk with each person about their personal and professional goals. Create alignment of their personal and professional goals with the company's goals. Then, each person will realize their goals by performing their job and helping the company to reach its goals.

Hi ^redacted‌, as others have noted, it depends on the exact risk and how long it will take you to mitigate it. In general, start with the simplest solution first. E.g., look at offering more money before you turn to offering equity. Additionally, you have to meet with the key employee prior to closing. The seller may resist, but if an employee is truly critical (i.e., the business trends towards failure without him or her), you have to better understand that employee's reasons for staying post-close. Lastly, and again, depending on the risk, you can turn to deal structure. If the loss of a key employee impacts revenue, a forgivable seller note could offer some relief. Happy to discuss further. Feel free to reach out at redacted and we can set up a time to talk.