Ideas into Reality

​I want to sell my business but I’m told I have to have employees

My question: how can you acquire employees from another business (that is getting ready to close its doors) in order to make your business more valuable prior to selling it, without having to manage the employees prior to the sale?

More info below:

I’m in a bit of a predicament. I own a reputable painting contracting business and about a year and a half ago I changed my business model from nine W-2 employees to using only subcontractors to produce the paint jobs I sell. It’s been going great – customers are happy (his employees are better than mine ever were), subcontractors are happy, I’m way less stressed.

The issue is that my main subcontractor is moving out of the state January 1, 2025 and planned on basically just dissolving his business. Yes, I can find another subcontractor, but I’d prefer not to do that, and frankly, I’m at a bit of a crossroads myself and would like to move as well, and do something else after 15 years of operating a painting business. Selling my business would allow me to do that.
I’m told by business brokers that in order to sell my business, I need to buy his business, more specifically his employees (I realize how that sounds), from him, and quickly, before he leaves. I’m told buyers want a business that is turnkey.

I am his only “customer”. He doesn’t have a website, doesn’t generate leads, no customer base ,etc. But his 12 employees are absolute badasses. I know nothing about this world, but a quick Google search says maybe I can do an “asset purchase and acquire just his employees”, with the intention of immediately turning around and selling my business. He is very open to it and would gladly accept pretty much any amount of money I would offer him, as he had just planned on dissolving his business.

Is this really possible? What does this process look like? What I’m trying to avoid is having to manage employees again – I absolutely hated everything about it (workers comp fraudulent injuries, wage and vacation negotiations, guys milking the clock or being late, etc etc). Is there a way I can basically package my brand reputation/lead generation with his employees and sell it immediately? Can I buy his business / acquire his employees through an asset purchase / be some sort of majority shareholder or something and sell our businesses together without ever having to manage employees?

EDIT: Thank you for all the responses, seriously. I think the best solution for me and the new buyer would be to sell my business to a competitor or other painting contractors that I have longstanding relationships with and refer them when we are too busy. They won’t care about employees, as they already have their own. They also already have all the systems in place for selling paint jobs, managing crews, etc. The real value in purchasing my business is my top-notch local SEO, my brand reputation/300+ 5 star reviews, my very professional website, 500+ customer base, and 5 major hotel contracts. Thank you for helping me see this. I got caught up in what the broker said and realized I probably don’t need a broker to sell my business when I already have the connections. Thank you all.

submitted by /u/eminectar
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