Legal Question in Business Law in New Jersey

Agreement

I have been employed by the this company for going on twelve years. My position is CFO. I have been asked by the owners of this privately held company, for more than 50 years, to submit and communicate confidential information with potential buyers of their company. The majority owner is in his upper seventies, while the other three owners, his three sons are the same approximate age as myself approximately fifty. Rather than possibly leaving his company in turmoil after the founding owner passes on, he is opting to see how much his company is worth by trying to market it today. Other factors, economy industry, etc. could be contributing factors as to why the majority owner may be considering to sell. I am in the uncomportable position of trying to get the owners the best possible price for their company, while potentially putting myself right out of a job. My relationship has always been the very best with the four owners and I don't want to risk losing it. What can I do to prtect myself and family?


Asked on 5/08/06, 11:00 am

1 Answer from Attorneys
Daniel Pepper Pepper Law Group, LLC

Re: Agreement

There are a couple of options you should consider.

One, if a purchase is likely to be forthcoming, and it is unclear whether or not you will be employed by the acquiring company, you should gently request that a severance package be negotiated for you in the event of a change in control which eliminates your position.

Two, you can advise the owners of the company that you are happy to assist in discussions with an acquiring entity, but that a stipulation of the sale is that your employment is maintained under certain minimum guidelines (responsibility, salary, benefits, etc.).

If your relationship with the owners are as strong as you've indicated, they surely will understand your concerns and be willing to work with you. I am also happy to discuss these options in further detail, and perhaps explore other alternatives. Please feel free to contact me.

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Answered on 5/08/06, 11:46 am


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