I’m about to purchase another similar business that will effectively double my business. I wish to retain all the staff at the new business and, with the exception of one employee, all have been there short periods (1 to 5 years).
There is one person with 20 years’ experience. Obviously, I would inherit the severance liability if I recognized those 20 years (but I am not buying the corporation, just the assets) but the current vendor does not want to “discount” the price of the business by the amount that I have calculated I could be liable for, should that employee not work out. In fairness to the situation, I don’t believe the employee will ever force me to terminate his employment; however, business is business. I need to protect myself.