Majority owners and minority investors act wisely when they negotiate and adopt a buy-sell agreement (BSA) at the time the private company investment is made because the BSA helps to avoid future conflicts between them. Signing a BSA, however, and deciding when to trigger it to require the purchase/sale of the minority interest are different
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
As private companies grow, they need to secure capital to support their efforts to provide more (and/or better) products and services to their clients. The need for emerging companies to obtain growth capital often leads the majority owner to consider accepting an investment in the business by a private equity (PE) firm. In this post