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Home Q&A Forum How are employee benefits managed in an asset purchase agreement?

Employment

Asset Purchase Agreement

California

Asked on Oct 14, 2023

How are employee benefits managed in an asset purchase agreement?

I am a business owner who is looking to purchase a company. This company has many employees, and I want to make sure I am making a well-informed decision about how employee benefits will be managed in the asset purchase agreement. I am looking for advice on the best way to protect both the interests of my business and the interests of the employees in this agreement.

1 Attorney answer

Answer

Employment

California

Answered 246 days ago

Sarah S.

ContractsCounsel verified

Business Lawyer
Licensed in California
Free Consultation

In an asset purchase agreement (APA), careful consideration is given to managing employee benefits. The agreement outlines whether the buyer assumes responsibility for continuing specific benefits post-closing, addresses accrued employee benefits, and establishes a clear process for notifying employees of changes. Legal compliance with employment laws, due diligence on existing benefit plans, and provisions for the transfer of benefits are crucial. The APA also covers communication strategies, severance agreements, and adjustments to employee handbooks, ensuring a comprehensive approach to employee benefit management during the transition.

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