Legal Due Diligence · glossary

Change-of-control bonuses

Cash promised to staff if the company changes owner. The company pays it, so the cost falls on the buyer unless the deal provides for it. Sunrise found €350,000 of these bonuses and allowed for them in the price, as permitted leakage. Report §6.2 · Chapter 9

Explained in Chapter 9, People and Incentives, of Legal Due Diligence.

How it comes up, in Chapter 9
The second finding is a cost, and a cost can be priced. Two senior managers are owed change-of-control bonuses: cash paid when the Target changes owner.
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