Minority investors often purchase interests in private companies without securing a buy-sell agreement (BSA) at the time of their investment. After a few years pass, however, the minority investor and the majority owner may both want one, but for different reasons. The majority owner may desire to redeem minority interests in the company held by
More than two centuries before Hamilton became Broadway’s most successful musical, Alexander Hamilton and his nemesis, Aaron Burr (sir), chose to resolve their disputes by dueling at dawn in Weehawken, New Jersey. This fateful duel, as we all know, mortally wounded Hamilton, one of our nation’s
In the final quarter of the year, many private companies will accept new investments that accelerate their growth. But new investments are not guaranteed to create lasting relationships, and that may be the case when new investors join the company. Here, if the majority owner’s relationship with the new investor sours in the future, both
One of the thorniest issues private company owners and minority investors may be required to confront in going through a business divorce is determining the value of the minority interest being purchased. It is not unusual for experts to disagree over the value of the minority interest, and this conflict can delay or even derail