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Moorcrofts Means BusinessAuthor: Moorcrofts
Welcome to 'Moorcrofts Means Business' podcast, where our speakers will be discussing legal topics to help you run your business as efficiently as possible. Topics will range from buying and selling a company in the UK or abroad, legal technology matters from open source licences through to software and hardware contracts and IP protection, leasing a commercial property and the very thorny and ever evolving landscape of employment law and contractual services. All our podcasts are for general information and are not to be taken as bespoke legal advice. Language: en-gb Genres: Business, Business News, Management, News Contact email: Get it Feed URL: Get it iTunes ID: Get it |
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Best practice for employment due diligence in a business sale
Episode 7
Wednesday, 12 August, 2026
Welcome to Series 4, Episode 7 of the Moorcrofts Means Business Podcast!In this episode, Corporate Partner Will Pearce and Employment Partner Lindsey Abbott discuss the role of employment due diligence in a business sale, exploring the key employment risks buyers and sellers need to consider and how businesses can prepare their employment affairs well in advance of a transaction.Employees are a fundamental part of any business, and employment issues can have a direct impact on the value, structure and success of a transaction. Effective employment due diligence helps buyers understand the people risks they are acquiring, while early preparation can help sellers identify and resolve potential issues before they become a problem during the sale process.In this episode they discuss key questions including:Why employment due diligence is an important part of a business sale and how employment issues can affect the value, structure and success of a transactionThe key employment risks buyers and sellers should consider, including tribunal claims, grievances, discrimination and whistleblowing allegations, senior employee disputes and holiday pay liabilitiesCommon red flags that can arise during due diligence, including minimum wage issues, missing employment contracts and contractors or consultants who may be incorrectly classified as self-employedWhy sellers should prepare early by reviewing employment contracts, handbooks, benefits and other employment documentation, and identifying and addressing potential liabilities before going to marketThe importance of considering how employment arrangements may appear to a potential buyer and ensuring key documentation is up to date and properly recordedHow buyers may seek to retain key employees following completion and the employment terms that may be particularly important for senior executives, including notice periods, bonuses, benefits and restrictive covenantsWhat TUPE is and when it can apply in a business sale, including the distinction between share sales and asset sales and the impact this can have on transaction planningHow employment issues identified during due diligence can be managed through warranties, indemnities and other protections in the transaction documentsThe importance of managing confidentiality and agreeing a clear communication strategy when informing employees about a transactionWhy employment due diligence should not be treated as a box-ticking exercise and why understanding the people risks is essential to a successful transactionWhy early preparation, transparency and legal advice can help sellers manage potential issues and support a smoother sale processTune in to gain practical insight into the employment aspects of due diligence and how early preparation and effective legal advice can help businesses identify and manage employment risks, protect value and support a smoother and more successful sale process.
