LOI- Key Man Provision

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May 26, 2026

by a searcher from University of Texas at Brownsville in Houston, TX, USA

I am looking at a deal where the general manager ( not the owner) is the key man. The general manager has a license, while not hard to obtain, I want to ensure continuity for at least 6-12 months. What are some provisions that you have used in the LOI or other forms of employment retention?
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commentor profile
Reply by a professional
in Windermere, FL 34786, USA
Make them entering into an employment agreement a condition to closing. Cash incentives work better than punitive ones. Depending on the sophistication of the individual perhaps some equity, but they aren't always motivated by equity. Good luck!
commentor profile
Reply by a lender
from University of Missouri in Denver, CO, USA
Maybe an employment contract or very small equity owner? Let me know if you want to discuss financing
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