What Happens to My Employees When I Sell My Business?

For most owners I work with in Portland and SW Washington, this matters as much as price. The good news: in the lower middle market, buyers are usually buying the team, not replacing it.

What usually happens

• Nearly all employees receive offers and continue in their roles
• In an asset sale, staff are technically rehired by the buyer's entity on day one
• Base pay is typically matched; benefits move to the buyer's plans, which may be better or worse
• Accrued PTO is either paid out at closing or carried over — this is negotiated, not automatic

Where jobs actually get cut

Overlap, not headcount targets. A strategic buyer with its own accounting, HR, or marketing function may consolidate those roles. Field, production, sales, and client-facing staff are almost always retained because that's the revenue the buyer paid for.

What you can negotiate for them

• A stated retention period or severance protection for named employees
• Credit for years of service in the buyer's benefit and PTO plans
• Stay bonuses for key people, funded from proceeds
• Retention of the company name, location, or brand where it matters

The bottom line

Employee treatment is a term, and terms are negotiable. Raise it early — before you have one buyer at the table — so it becomes part of what you're selecting for, not something you plead for at the end.