How Short-Term Incentive Plans Can Help Maximize The Sale of Your Business
Employees are the lifeblood of every business. For business owners, attracting and retaining key employees is one of the most crucial challenges they’ll face. However, when it’s time for owners to exit their businesses, they often neglect this still vital factor when they become occupied with other concerns. Retaining key employees is a necessity that will help the business to be sold at its highest possible value. Owners should keep these three objectives in mind with regards to their key employees when selling their business:
1. Keep them motivated to increase the company’s profits
2. Keeping them on board before, during, and after the transition
3. Rewarding them when the sale is completed
One of the best ways to accomplish all three of these goals is through incentive planning. Though many businesses may already have incentive plans in place, some adjustments may be necessary when selling the business. For instance, converting existing long-term incentive pans into short-term incentive plans that last from when the business is first put on the market and reach their total payout one to two years into being employed by the new owners/company. Those without an existing plan should consider creating a short-term bonus plan. Doing so gives the key employee(s) reasons to continue with the new company
Download our latest white paper for free to learn more about how short-term incentive plans can maximize the sale of your business. If you have any questions, please don’t hesitate to contact us.