Working for a small company may be desirable for many executives. An executive often receives equity in a company as part of the executive’s employment agreement, and the executive can reap potentially huge financial benefits if the company mergers with another company or is acquired by a larger company.
But when a small company is acquired, big changes usually occur, and an executive must evaluate employment options. An executive may prefer to resign and join another venture. Often, an executive can negotiate a favorable exit package because the acquiring company plans to place its own people in key positions. Or, an executive may continue to work for an acquiring company under the terms of a pre-existing employment agreement, if the new company assumes the agreement. Lastly, an executive may negotiate a new employment agreement directly with the acquiring company.
An attorney can help an executive facing the acquisition of an employer to evaluate risks and to determine the best course of action. If needed, an attorney can also help negotiate a severance package or a new employment agreement. For assistance in navigating the employment issues that may arise during a merger or acquisition, please contact the Dallas, Texas employment lawyers at Clouse Dunn Khoshbin LLP at [email protected].
