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?