September 24, 2015

Divorce reducing company value

“I would never mix my business life with my personal life!” I’m sure some of you share this view. What I don’t know is the percentage of those of us that in reality mix these two, irrespective of what we believe. ☺

The separation of couples from each other is one of the important incidents in one’s social life. It is not very hard to evaluate the impact of such describable events on the businesses they work for.

In his article on Nov. 26, 2014 in the newspaper The Guardian, Owen Bowcott writes about a research made by The Centre for Social Justice in the UK.

According to the study, 16% of respondents reported having seen workplace companions hit by sick leave due to the stress or anguish of a breakup, while 15% said separation or divorce had a negative impact on productivity. The survey also found that 9% of employees either had to leave their jobs as a result of divorce or separation from a cohabiting relationship or knew a colleague who had done so.

If you are selling your SME, then you should also check subtly whether or not your employees’ life at home is good. Since you cannot have a replacement ready for each position in the company, losing one of your important employees in this process could put a lot of pressure on you.

Trying to use that pressure for their own advantage, potential acquirers could have an additional argument for paying you less for your shares.

The survey showed that 10% of people think their employers offer adequate support for those going through a breakup.

Don’t forget: Even if you are selling your business, the problem of an employee is also your problem.

To read the whole research: Fractured Families

The oldie of the week: Bobby Solo – Se Piangi, Se Ridi (1965)

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