Personnel / HR
Preparing for a business sale or transition requires a thorough HR due diligence process. Having all personnel-related documentation organized and accurate is crucial for a smooth transaction and minimizes legal and financial risks.
Essential HR & Personnel Documents for Review:
-
- Employee Records: A detailed list of all employees, including hire dates, positions, responsibilities, salaries, bonuses, and work locations.
- Specialized Personnel: If applicable, a list of all marine personnel, including their accreditations, qualifications, experience, and salaries.
- Employment Agreements: Copies of all current employee employment contracts.
- Termination Documentation: Records of all employee terminations within the past two years, along with all associated paperwork.
- Organizational Structure: A current organizational chart and employee headcount breakdown by department.
- Management Overview: A summary of key management personnel and their roles.
- Compensation & Benefits:
-
-
- Details of all employee compensation plans.
- Copies of consulting agreements and an outline of consultant services.
- Overview of corporate benefits, including pension plans, vacation policies, insurance, and other perks.
- Analysis of how the transaction might impact compensation.
-
- Regulatory & Compliance:
-
- Payroll reports and overtime history for each employee.
- Collective bargaining or labor agreements, including relevant filings, union communications, and proof of payments.
- Documentation regarding any labor disputes, employment lawsuits, or potential work stoppages.
- Immigration paperwork for foreign employees.
- Company Policies & Handbooks: Copies of the employee handbook and all relevant company policies.
- Profit-Sharing & Incentives: Documentation of employee participation in profit-sharing programs for the last five years.
Maintaining accurate and current records is essential for a streamlined due diligence process and can increase the company’s perceived value to potential buyers.
