Jen: This is the PKF Texas – Entrepreneur’s Playbook®. I’m Jen Lemanski, and I’m back again with Kimberly Wood, a senior manager on our transaction advisory services team. Kimberly, welcome back to the Playbook.
Kimberly: Thanks for having me.
Jen: Kimberly. So, I know there can be obstacles during a process when a company is looking to sell. How do you keep employees or partners from diverting that process and that end goal of selling the business?
Kimberly: Yeah, that’s a great question. You want to get your documents in order – key documents. You want to have your non-competes in place with key management personnel. You want to make sure that you have a good sales team and not just a super salesman.
And then you want to make sure your employees are engaged in the selling process. You don’t want any disgruntled employees holding up the process from potentially selling your business. So, maybe it’s giving equity incentives.
And then for exiting owners, you want to make sure that you have a good management team in place that can continue to run the business without you.
Jen: So, you mentioned documents is the first thing. What does that documentation look like?
Kimberly: Yeah. You want to make sure all your organization documents are filed, board minutes, lease agreements, buy/sell agreements – any key agreements that a potential buyer would be interested in.
Jen: And beyond the NDAs, is there anything from an HR perspective that you need to have in order as well?
Kimberly: Yeah. I mean, any commission agreements, sales, any potential liability in place, of course, you want to have all your HR handbook, things like that ready as well.
Jen: Kimberly, we’ll get you back to talk a little bit more about this in the future. Sound good?
Kimberly: Sounds good.
Jen: This has been another thought leadership production brought to you by PKF Texas – The Entrepreneur’s Playbook®. For more information about this topic, visit www.PKFTexas.com. Tune in next week for another chapter.