Operations Due Diligence

Employee Classification

Whether workers are correctly treated as employees or contractors, and whether employees are exempt or non-exempt. Why it matters: This gives owners a clearer way to understand buyer questions, advisor comments, and negotiation tradeoffs during a sale process.

Related terms

Advisor

A professional who helps with the sale, such as a broker, M&A advisor, CPA, attorney, or investment banker. Why it matters: The right advisor can help prepare materials, explain tradeoffs, manage buyers, reduce surprises, and keep the owner from negotiating complex deal terms alone.

Buyer

The person, company, investor, or fund trying to buy the business. Why it matters: Different buyers value different things, so knowing the buyer type helps an owner understand likely questions, risks, financing needs, and negotiation style.

More from Operations Due Diligence

Contractor Employee Handbook Exempt Employee Key Person Risk Management Team Non-Exempt Employee Organizational Chart Owner Dependence Retention SOPs Standard Operating Procedures Stay Bonus

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