When in your acquisition process do you prefer to have senior management read in?

intermediary profile

December 10, 2025

by an intermediary in Toronto, ON, Canada

We've been working on a deal where we're buying 100%, the owner will be out completely because the business has been run by top management (4 people) for years. Owner doesn't want the top management to be included in discussions until right before we execute the transaction, assures us "they'll be no problem". Meanwhile, there are no written employment agreements and some of these people have been with him for 20 years (this is Canada). We're buying the assets, not the shares. Anyway, our concern is that we won't have a chance to evaluate senior management until after we've incurred accounting and legal costs and it's possible we find out it won't work out with one or more of them (and we'd want management continuity post-take over). When in your process do you typically want key-persons read into the deal so you know where you stand with them?
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commentor profile
Reply by a searcher
in Raleigh, NC, USA
I prefer to know who is there, but its not a deal breaker. I view it as a risk that needs to be accounted for, and honestly, its just about as much risk with them not knowing as there is with them knowing There isn't a ton you are going to learn pre-acquisition anyway. You can see a resume, get the owners opinion, look at past-performance reviews (if they have them) etc, but you are always going to get a all-is-well type view pre-acquisition. On the flip-side, its the same as they are doing for you as well. No one knows for sure how its going to go until the rubber meets the road. We have an on-going relationship with an executive search firm that I occasionally nudge to see what kind of pipeline they have for certain roles. If I think I am going to need a high level Operations person, I reach out to my contact to see who they know in the area.
commentor profile
Reply by a searcher
from Brigham Young University in Kansas City, MO, USA
Definitely prefer it, but I would say it is rare to get access to senior management that early in the process. From a seller's standpoint there is considerable operational risk as well if the deal fall's through.
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