And, as we said above, the first step is to create a great conservation bonus deal trying to stay in the file so you can use it if you need it. The budget for stay bonuses depends on several facts and circumstances. It is a broad spectrum in practice, and in many cases its zero. As a general rule, the larger the business, the lower the budget is relatively low at the selling price. Unfortunately, this can be a significant percentage of the selling price for small service businesses with few staff. Some sellers choose to pay bonuses to loyal employees, only to recognize their contribution to the goodwill value of the company, regardless of retention. A retention bonus contract is a document that extends your employees` integration bonus during a merger or buyback. In short, it offers an incentive in the form of a one-time (or double) payment sent to your top performers in exchange for them to continue working in the organization for some time after the California-based Exit Strategies Groiup event, helping business owners plan and leave their business successfully since 2002. Stay bonuses are just a tool in the M-A toolbox. If you have any questions or are considering selling your business, email Al Statz or call 707-781-8580 for confidential advice.
All of these things need to be mentioned in the conservation bonus letter so that your employee fully understands what you are offering them. The last thing you want is to either confuse your employee and is not willing to accept the offer, or let countless employees arise with simple questions that you may have answered in an email/agreement. This agreement must be solid and easy to understand. So be sure to talk to your legal team before you offer it, and even tell your employee to check with his or her lawyer. The last thing you want to have right after a big business event like a merger or acquisition is to end up in court. Ultimately, your retention bonus contract should benefit both you and the employees you want to keep.