Does anyone have experience offering post-transaction employment to an owner? It seems the owner would be interested in that for a company I'm considering. Given their expertise and the company's performance, employing him may make sense for this opportunity.
The main three questions I have are as follows:
A.) Should such an offer be discussed with the seller's broker?
B.) Is there any risk to SBA financing if the prior owner is retained as an employee post-transaction?
C.) I assume it's a valid practice to make an LOI contingent on signing retention contracts with key employees, which the former owner would be in this case. Am I mistaken?
I'll appreciate any info folks may be able to share. Thanks to all in advance.
Rehiring a seller as an executive?
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