Mergers and Acquisition Due Diligence

Whether you buy, sell or merge your business, it is important to understand all the issues and risks involved. Too often, Labor, Employment and Employee Benefits Law issues are overlooked or presumed to be unimportant. As a result, your deal may be a mistake. Some of the “deal breakers” you cannot afford to miss are:

  • Union contracts with successors and assigns clauses, neutrality clauses, severance clauses and/or restrictive work clauses;
  • Employment contracts with golden parachutes;
  • Restrictive covenants- whether key personnel can desert you for a competitor;
  • Pending court room or administrative litigation;
  • Business practices and/or philosophies in contrast with your own;
  • The value or cost of a merged corporate structure – one entity versus separate entities;
  • Turning a unionized acquisition union-free; and/or
  • Whether the local community is litigious, a hot bed of union activity, a publicized target of the AFL/CIO or Change to Win, and/or unable to support your labor needs.

With all the information, you can make better, well-informed decisions. Best of all, you will be one step closer to closing the deal. You would never merge with or acquire a company without analyzing its financial “book.” Shouldn’t you do the same with its Labor, Employment and Employee Benefits “books?”