I recently uncovered that my acquisition target does not offer health insurance to its employees. This a distribution business, where margins are already tight.
While the owner has explored offering a plan in the past, I'm told most existing employees are on spouse plans and did not feel they needed an employer-provided plan. Employees are well-tenured and seem happy, but I worry about attracting future talent with no health plan in place.
Currently receiving quotes for a pretty basic 50-60% employer contribution plan running around $###-###-#### /mo per employee. This would add around $30-40k of annual cost to the business.
Would this be a deal-breaker for you, and if not, would you renegotiate if you uncovered this? Has anyone bought an SMB where there was no health plan, and how did you navigate post-close?
No Health Insurance for Employees
by a searcher
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Above is not a legal advice. You should consult your attorney.
Hard to comment on the cost of health insurance w/o knowing if such cost will decrease profit by 100%, 50%, 10% or 2 %.