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While losing any of your key people in the life of your business is difficult and can be very detrimental to your business, its particularly damaging in the later stages when youre planning your exit. Your key people, they know that their key and they know that they have negotiating power and sometimes theyre not too happy when they find out that the business is going to be sold or transferred. So we want to do what we can to make sure that were; A. Communicating with them in an inappropriate way about whats going on, and B., that were retaining and rewarding them and preventing them from going out and hanging their shingle and competing with us, potentially costing us, the deal that were planning in our exit or a third party sale that were planning. Any buyer wants to see that the key management team is going to remain intact after the transition. So if the business revolves around you or if you have key people that you are not doing anything to retain, that can be very potent
