Questions to ask key employees during DD?

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March 17, 2022

by a searcher in Glendale, AZ, USA

Meeting the Office Manager and GM of a potential target soon. What are some questions you tend to ask key employees who you hope to stay in the business for at least a year?

I'm planning on keeping the questions fairly open-ended.

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Reply by a searcher
from University of Oxford in London, UK
One general piece of advice is to keep the conversations going "too long". I do this with reference calls. It makes sure that you get as much of the prepared responses out of the way and open up more candid honesty. Some questions:
1) Have they considered taking jobs elsewhere recently, which ones and why?
2) How has the sale process impacted the business
3) Are clients aware of the sale process, are they concerned
4) How much is the seller-manager "hands-on", how much would their role be missed
5) Which employees would you be most focused on retaining through a transition and why
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Reply by a searcher
from University of Kentucky in Lexington, KY, USA
A big item for me is understanding the culture of the company and its employees. I have found the more I understand these points, the easier it will be to retain employees through the uneasiness of a transition. I also occasionally ask what their favorite benefit that s offered is (if the current ownership offers benefits).
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