In prepping your business for a prospective buyer, you should include an inventory of all your business systems as part of your exit strategy. One system I’d like to highlight today is the employee manual. It’s surprising to me that so many companies lack this necessary document. Employee manuals should include information on all the benefits of the company such as vacation, sick leave, Family and Medical Leave Act benefits, jury duty, military leave, leave of absence, health insurance, retirement plan benefits, workers compensation, disability or life insurance benefits, etc. This information should also include important policies and procedures on sexual harassment, termination of employees, COBRA, to name a few. You might consider discussing this topic with your attorney if some of the items above are not documented.
An employee manual is one of many elements that are included on your general information checklist that should be prepared for prospective buyers. For more information about how to prepare for your exit strategy contact me.