When a closely held company encounters a deadlock among its shareholders, careful strategy and negotiation are necessary to engineer a resolution that keeps the company operating and offers the shareholders an exit plan. Often a buyout, and sometimes dissolution, is necessary. The business attorneys of Dalton & Tomich, PLC are experienced in working with leaders of businesses from small enterprises to middle market businesses in attaining a mutually agreeable resolution to the parties’ discord.
Key factors to consider in business divorce include:
The attorneys of Dalton & Tomich, PLC have the experience and the knowledge to work with you to develop a legal solution that helps you accomplish your goals.Speak With an Attorney
The first step is to look at the company’s operating agreement or bylaws, and buy sell agreement if there is one. Often the terms agreed upon at the beginning dictate your options. If a review of those documents does not provide clarity, you should speak with an attorney.
It might. We always start with bringing the parties together and attempting to negotiate a resolution. If that does not result in a resolution, we evaluate our next options, which may include litigation.
In closely held companies, financial obligations to third parties will need to be untangled. The shareholders may have guaranteed loans, have made personal loans to the company, or created a default in another line of business that impacts a financial obligation to the company. The end of employment relationships can also create an interruption in the business, especially when a shareholder is also employed by the company.