As most have indicated, it depends on an individual's role and contribution to the business. For some, you will want legal protections (covenants, indemnification, etc.). For others, you will want want them to leave (now or eventually). Putting that to the side, keep common sense considerations in mind. First, no seller or seller group (including partners or family) ends up completely happy post-closing. You will be the "new" guy who will be changing "their" world no matter how good your intentions are. Those receiving no or limited economic windfall who remain will be the least happy. Second, the timeframe at closing or immediately post-closing will be the easiest time for you to make the difficult decisions. I would suggest you that you take a candid, critical look at your circumstances and make all difficult decisions through the closing process or at the quick onset of the new enterprise. Be above-board. If you plan to eliminate family members now or later, you should discuss same with the seller(s) prior to closing. Any bargain between two knowledgeable participants is the best bargain.

It can work out. One situation we acquired in the seller’s spouse was the general manager, and they stayed on for a year and helped coordinate a smooth transition. In another business, a family member of seller has stayed on as a contractor for over 2 years and growing strong. Key is open discussions (ideally pre-close) and understanding what their actual goals are.