One of the biggest surprises for founders during a business sale is how much attention buyers give to employment documentation. Not revenue, not customers — employment risk.
With the Employment Rights Act 2025 reducing unfair dismissal protection to six months and increasing potential compensation, that risk is about to grow significantly.
In this video, we break down what buyers actually look for during employment due diligence, the most common issues that get flagged — including contractor misclassification, weak contracts and informal arrangements — and how these risks can impact your deal value.
If you’re planning to sell or raise investment, getting your employment structure right early can protect both your valuation and your position.
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