Existing employees and the liabilities that may ensue from their longevity with the company or the high burden of their benefits is just one more thing to be aware of when purchasing the assets or shares of a business or corporation as the case may be. Many companies indicate employee liability as the highest liability item on their books. Accordingly it is one consideration that a buyer must diligently look into before committing to a purchase. Whereas it is not insurmountable when properly handled it could quickly become quicksand if not properly addressed in the negotiations and ensuing agreements.
Some of the ways of addressing employee matters at the point of purchase includes adjustment credits for upcoming benefits in favour of the buyer. There are several other tools that may be used to minimize or eliminate the liabilities posed but they must be discussed and taken on at the onset of the negotiations.