If there is a minority shareholder in a business, he or she may need to be consulted before selling the company.
It depends on the arrangement that was made. There may be a right of first refusal for the minority shareholder, or other provisions in a buy-sell agreement, or even timing issues to close a deal.
Business owners who have minority shareholders need to review their agreement and consult with their attorney before going to market.
Here are some insights on “Terminating Ownership Interests in Closely Held Businesses.”
|Michael Marks, creator of Toons ‘n Tips, is a Certified Business Intermediary (CBI) and has over thirty-six years of business experience and ownership. He is a licensed real estate broker in the state of Colorado and has been selling businesses for over eighteen years. Michael has taken up cartooning as a hobby in recent years and has found that by using those skills, along with his extensive business experience, he has been able to create the Toons ‘n Tips drip marketing service for clients all over the country. Find out more about Michael at www.toonsntips.com.|