Enhancing Business Value by Reducing Staff-Related Risks

If you think you might be marketing your business for sale in the next 6-12 months, you should be looking at ways you can increase the value of your business. One area often overlooked is the potential risks associated with employees. From intellectual property theft to unfair competition, these risks can significantly impact your business's value.  These issues, when left unresolved, represent a significant risk to a potential buyer. Dealing with these risks is a technique that will have a big impact on the value of your business in the shortest period of time and which also pose a low risk to implement. Here are some action steps for you to consider.

Employment Agreements:

One of the most effective ways to protect your business is through well-drafted employment agreements. These agreements clearly outline the terms and conditions of employment, including job responsibilities, compensation, benefits, and termination clauses. By clearly defining these aspects, you can minimize misunderstandings and potential legal disputes.

Moreover, employment agreements can also include provisions related to confidentiality and intellectual property rights. These provisions ensure that employees understand their obligations regarding the protection of sensitive information and intellectual property. This can be crucial in industries where proprietary information is a key asset.

Confidentiality Agreements:

Confidentiality agreements, also known as non-disclosure agreements (NDAs), are essential for businesses that rely on proprietary information. These agreements prohibit employees from disclosing confidential information to third parties. By requiring employees to sign confidentiality agreements, you can protect your trade secrets, customer lists, and other sensitive information.

Non-Solicitation Agreements:

Non-solicitation agreements are another valuable tool for protecting your business. These agreements prevent employees from soliciting your customers, clients, or other employees for a specified period after leaving your company. By preventing unfair competition, non-solicitation agreements can help maintain the value of your business and protect your customer relationships.

If you’re allowing your employees to use their own cell phones to communicate with your customers, you have another huge hole in your data control system.  We highly recommend that you take steps to control your data:

Read More: Employee Cell Phone Usage – It’s a Problem for Businesses

Reducing staff-related risks is a strategic approach to value maximization of your business.  These issues can be cleared up with minimal cost in a matter of several weeks by retaining one of the experienced business attorneys at Fiffik Law Group to prepare agreements and advise you how to have them signed in a way that they’ll be enforceable. Contact us to get started.