Transferring Ownership in a Small Business

Just because a company has a key employee who knows a lot about the business, its operations, customers, and employees doesn't necessarily mean they should stay indefinitely.

I sold a temporary help business last year, and the key employee would only sign a six-month employee contract. At the time, this was a concern for the buyer. After one month of owning the business, the owner was counting the days until the six-month contract expired. With a key employee having a lot of knowledge but a bad attitude, not always honest, not a team player, and only out for himself, the company would not thrive and grow with him involved.

The new owner started interviewing and found several excellent candidates that he would enjoy working with--Oh, by the way, for less money and fewer perks than the previous employee was getting.