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The Impact of Buying and Selling Businesses

Introduction

In a time when business are faced with choosing to sell all or a portion of their business or closing their doors, mergers and acquisitions are becoming more common transactions. Often the treatment of the employees is left unaddressed by the selling and purchasing entities. Unfortunately, there are several considerations that should be addressed by the selling and purchasing companies, and depending on the nature of the sale, a variety of different notices that must be provided to employees. Notices can be required by different administrative agencies, such as the California Employment Development Department, or required by different laws, such as the Consolidated Omnibus Reconciliation Act (COBRA), California Consolidated Omnibus Reconciliation Act, and the Worker Adjustment and Retraining Notification Act (WARN).

This section is designed to address some of the factors that should be considered by employers when selling or purchasing a business with an existing workforce.





 
 
 
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