Labor And Employment Aspects Of Mergers And Acquisitions

Jim McDonald wrote an article for the Orange County Business Journal entitled “Labor And Employment Aspects Of Mergers And Acquisitions.”

There are numerous labor and employment issues that must be considered in any merger or acquisition, Jim wrote.

Much depends on whether the transaction involves a sale of stock or a sale of assets, he explained. In a stock sale there is no change of employer so the issues are fewer.

Jim said it is also important to know whether a company is party to any substantial class action lawsuits or government investigations. He also suggested that executive employment contacts be examined to determine whether they contain "change in control" provisions that trigger expensive payouts should the company be acquired.