People diligence
Employees & Key-Person Risk
Small businesses can be disproportionately dependent on a few technicians, providers, salespeople, managers or operators whose departure changes the entire acquisition thesis.
Buyer lens
Identify which people carry revenue, licenses, customer relationships or operational knowledge that cannot be replaced quickly.
Seller lens
Build retention, documentation and management depth before key-person risk becomes a buyer discount.
Why it matters
- A key employee can be economically equivalent to a concentrated customer.
- Compensation may need normalization to market or retention levels.
- Licenses and customer trust can be embedded in specific individuals.
Evidence to reconcile
- Employee roster/tenure
- Compensation and benefits
- Revenue/productivity by person
- Licenses/certifications
- Retention and succession plans