What should I ask about an IT training school’s instructors and their contracts?
Ask who teaches each course, whether they are employees or contractors, what their agreements say, and who owns the course content they built. Then ask which instructors plan to stay after the sale. At a training school, the people at the front of the room carry the reputation.
List every instructor with the courses they lead and how they are engaged. Employees and contractors are treated differently, so have your lawyer or accountant confirm that each arrangement matches how the work is actually done. Ask how pay is set, whether it is tied to class size, and whether anyone has asked for changes recently.
Then look at what instructors created. Who wrote the slides, labs and exercises? If a contractor built a flagship course, the agreement should show who owns it. Check for confidentiality and non-compete wording, and ask your lawyer how enforceable it may be. A gap here can follow the school into the next ownership.
Finally, test loyalty. With the seller’s permission, meet the key instructors and ask what would keep them. Look at how often teachers have left and what was done to replace them. A school that depends on one star instructor deserves a plan for that person leaving, and a reduction in staff turnover is usually worth planning for early. Ask how instructors are scheduled, covered during illness and reviewed by students. A school with a deep bench of capable teachers is easier to carry through a sale than one where each course has a single owner, so look for backups behind each name.
Key takeaways
- Match every instructor’s paperwork to how they really work.
- Confirm in writing who owns each course they built.
- Meet key instructors and ask what would keep them after the sale.
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Succession
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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