Service Company - Managing Key Man Risk
Hello all,
I'm currently doing due diligence on a service company.
My chief concern is key man risk. The work is being done by four techs, two of whom are owners and will need to be replaced within 2 years. One of the two, non-owner techs is a senior guy that the business needs to retain in order to be successful post-acquisition.
Does anyone have experience with deal structures / incentives to derisk a situation like this?
The chief tech has interest in becoming an owner, but the current owners don't think he as the business savvy to acquire alone.