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Employment Due Diligence in Mergers and Acquisitions

Acquiring, selling or investing in a company requires clarity about the assets acquired and risks assumed. Labor liabilities can materially affect a business acquisition. The acquisition structure and any transfer of an undertaking shape the legal consequences.

What to keep in mind

With relevant employment specialists, examine headcount, employment terms, disputes, liabilities, social-security matters and continuity arrangements.

Undisclosed or poorly assessed labor exposure can materially change price and post-closing obligations.

Distinctions often confused

Purchasing shares differs from transferring an establishment, particularly for employment purposes.

Frequently asked questions

Does buying shares automatically terminate employment contracts?
Generally no, but the full labor regime must be assessed.
Can employee liabilities be excluded by a private contract?
Allocations between buyer and seller do not necessarily defeat mandatory employee protections.

Informational content. It is not a substitute for professional advice.