What to keep in mind
Review the equity position, valuation methodology, payment security, warranties, resignation and the treatment of pending litigation.
An agreement that fixes price without protecting payment or addressing existing guarantees may simply create another dispute.
Distinctions often confused
Leaving management and transferring equity are different transactions.
Frequently asked questions
Can one shareholder compel another to buy their interest?
That depends on law, bylaws and binding agreements; no universal buyout right exists.
How can an installment purchase price be secured?
Through lawful guarantees, security instruments and carefully defined default remedies.
Informational content. It is not a substitute for professional advice.