Further to our article last week, we thought it appropriate to complete the picture by highlighting that not only are the wages an issue for a new employer, but when you take over a business you will need to recognise the period of service and some other matters of employees with the seller.
This includes areas such as:
- Leave entitlements;
- Notice requirements; and
- Redundancy entitlements.
In addition, you may want to look at the quality of staff and the capability they bring to your new purchase.
There are a number of items you need to be aware of when you are looking to purchase a business. Having an organisation like HR Central conduct a HR audit may help uncover true costs of the purchase before you make any commitments you can fulfil.