In my last post, I presented a case study about Howard, the owner of a successful manufacturing company. When Howard passed away without a suitable buy-sell clause to ensure an orderly transfer of his ownership interest, all of the business’s stakeholders were caught in the crossfire. These included the other shareholders, his wife and his children. Today, I have another case study that ends on a more positive note. Why? Because these shareholders did it right …

When Tragedy Struck, these Shareholders were Prepared Continue Reading

In my previous post, I talked about what is arguably the most important, but often most overlooked, component of a shareholder agreement – the buy/sell clause. This mechanism establishes the ground rules for the orderly transfer of an ownership interest. I’ve seen a lot of unfortunate situations in my work—shareholders who pass away, become ill, succumb to substance abuse, endure personal crises that derail their business focus, or simply fail to fulfill their obligations to their …

In the Absence of a Buy/Sell Clause, Everyone gets Caught in the CrossFire Continue Reading