{"id":100992,"date":"2022-12-01t12:01:44","date_gmt":"2022-12-01t17:01:44","guid":{"rendered":"\/\/www.g005e.com\/?p=100992"},"modified":"2024-08-07t23:10:09","modified_gmt":"2024-08-08t03:10:09","slug":"merging-protect-your-staff","status":"publish","type":"post","link":"\/\/www.g005e.com\/2022\/12\/01\/merging-protect-your-staff\/","title":{"rendered":"merging? protect your staff"},"content":{"rendered":"<p><strong><a href=\"https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2015\/04\/fivepeopleat-office_dollarphotoclub_27848766.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-large wp-image-40282\" src=\"https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2015\/04\/fivepeopleat-office_dollarphotoclub_27848766-590x393.jpg\" alt=\"five young business people at work in an office setting.\" width=\"424\" height=\"282\" srcset=\"https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2015\/04\/fivepeopleat-office_dollarphotoclub_27848766-590x393.jpg 590w, https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2015\/04\/fivepeopleat-office_dollarphotoclub_27848766.jpg 300w, https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2015\/04\/fivepeopleat-office_dollarphotoclub_27848766.jpg 600w, https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2015\/04\/fivepeopleat-office_dollarphotoclub_27848766-290x193.jpg 290w, https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2015\/04\/fivepeopleat-office_dollarphotoclub_27848766-190x126.jpg 190w, https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2015\/04\/fivepeopleat-office_dollarphotoclub_27848766.jpg 1600w\" sizes=\"auto, (max-width: 424px) 100vw, 424px\" \/><\/a>if your people matter, show it.<\/strong><\/p>\n<p><i>by marc rosenberg<\/i><br \/>\n<a href=\"\/\/www.g005e.com\/shop\/how-to-negotiate-a-cpa-firm-merger\/\"><i>cpa firm mergers: your complete guide<\/i><\/a><\/p>\n<p>when a cpa firm acquires or merges in a smaller firm, it is common for the seller\u2019s staff to be employed by the buyer.<\/p>\n<blockquote><p><b>more: <\/b><a href=\"\/\/www.g005e.com\/2022\/11\/10\/cherry-pick-your-merger-partner\/\">cherry-pick your merger partner<\/a> | <a href=\"\/\/www.g005e.com\/2022\/11\/03\/34-steps-to-implement-a-merger\/\">34 steps to implement a merger<\/a> | <a href=\"\/\/www.g005e.com\/2022\/10\/20\/the-six-types-of-due-diligence\/\">m&amp;a: the six types of due diligence<\/a> | <a href=\"\/\/www.g005e.com\/2022\/10\/13\/why-solos-need-pcas\/\">why solo cpas need pcas<\/a> | <a href=\"\/\/www.g005e.com\/2022\/09\/29\/five-steps-of-due-diligence\/\">where mergers go wrong<\/a><br \/>\n<strong><img loading=\"lazy\" decoding=\"async\" class=\"alignleft wp-image-49700 size-full\" src=\"https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2016\/08\/yellow_key_clip_art-e1375897299811-36p-hi-1-e1603911598474.jpg\" alt=\"goprocpa.com\" width=\"39\" height=\"16\" \/><span style=\"color: #b79c00;\">exclusively for pro members. <\/span><\/strong><span style=\"color: #b79c00;\"><a style=\"color: #b79c00;\" href=\"\/\/www.g005e.com\/wp-login.php?redirect_to=\/\/www.g005e.com\/2022\/12\/01\/merging-protect-your-staff\/\">log in here<\/a> or <a class=\"external\" style=\"color: #b79c00;\" href=\"http:\/\/goprocpa.com\/\" target=\"_blank\" rel=\"noopener\">2022世界杯足球排名 today<\/a>.<\/span><\/p><\/blockquote>\n<p>in this situation, there are two very important documents to be executed between the buyer and the seller\u2019s staff:<br \/>\n<!--more--><\/p>\n<ul>\n<li><strong>written offer letter.<\/strong> this is the same letter any firm should issue to prospective hires. it outlines the salary and bonus arrangement, commission opportunity for bringing in business, major employee benefits, starting date, position or title and duties. it should also include a confidentiality agreement and a statement that employment is at will. the offer letter may also address how differences in employment matters between the buyer and seller will be addressed (e.g., health care coverages and premiums, paid time off, flexible or remote work policy). some firms require new employees to confirm in writing their agreement with an employee policy manual.<\/li>\n<li><strong>nonsolicitation agreement.<\/strong> the nonsolicitation agreement may be embedded in the buyer\u2019s employment letter or a standalone document. it states that the employee is prohibited from taking clients or staff of the buyer when leaving the firm, whether or not the clients and staff are solicited by the departing employee. the agreement typically specifies liquidated damages for violations. the enforceability of employee nonsolicitation agreements is determined by state, not federal, law. most states uphold reasonable post-employment restrictions, but some states are more supportive of employees and their ability to pursue their careers. most states are more likely to enforce nonsolicitation provisions against partners than rank-and-file employees.<\/li>\n<\/ul>\n<p><strong>best practice: employee nonsolicitation agreements<\/strong><\/p>\n<p>for decades, it has been a best practice for cpa firms to require employees to sign a nonsolicitation agreement as a condition of employment. in the early years of most firms, it\u2019s common to neglect having employees sign this agreement. the reasons are that (1) when firms are small and\/or less sophisticated, they simply never think of it (until advised by a cpa firm consultant i know who is a big cubs fan) or (2) they thought it was beyond comprehension that one of their employees might have the wherewithal and foresight to leave the firm and take clients and staff. consequently, many firms that today require employees to sign such an agreement <strong>changed<\/strong> their policy and started requiring <strong>existing<\/strong> employees to sign an agreement.<\/p>\n<p>attorney peter fontaine says, \u201cgenerally speaking, there should be a meaningful event attached to the signing of a nonsolicitation agreement with existing employees. for example, a substantial raise, a promotion, a new position, significant training, etc. because the employee is giving up a right \u2013 taking clients and staff \u2013 they should receive adequate compensation.\u201d<\/p>\n<p>the amount to be paid is subject to debate. not too long ago, paying employees a nominal amount was acceptable, but says fontaine, \u201cin this day and age, a nominal amount doesn\u2019t cut it like it used to. telling an existing employee that they must agree to a fairly significant restriction on future employment for a few dollars or get fired is generally viewed by the courts as draconian.\u201d<\/p>\n<p><strong>when a buyer employs the seller\u2019s staff<\/strong><\/p>\n<p>good news: in this case, the buyer need not remunerate the seller\u2019s employees. \u201cthe offer of employment is usually sufficient,\u201d says fontaine. one firm we talked to that has made several acquisitions in recent years said because their compensation and benefit package is always better than the sellers\u2019, it is sufficient remuneration.<\/p>\n<p>if the seller had signed nonsolicitation agreements from its employees, it is advisable for the buyer to have the seller\u2019s employees sign their own (new) agreement, as the terms are probably different and the enforceability less certain.<\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong>if your people matter, show it.<\/strong><\/p>\n<p><i>by marc rosenberg<\/i><br \/>\n<a href=\"\/\/www.g005e.com\/shop\/how-to-negotiate-a-cpa-firm-merger\/\"><i>cpa firm mergers: your complete guide<\/i><\/a><\/p>\n","protected":false},"author":1339,"featured_media":52068,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","footnotes":""},"categories":[2371,3120,3002],"tags":[],"class_list":["post-100992","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mergers-acquisitions","category-pro-member-exclusive","category-special"],"acf":[],"yoast_head":"<!-- this site is optimized with the yoast seo plugin v24.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>merging? 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