5 Tips for Buying Out Your Shareholders
In October of 2013, Michael Dell, owner of Dell, succeeded in buying out his publicly held company in a $24.8 Billion dealthat allowed him to start running his company again privately. Dell is satisfied with what has been labeled as one of the nastiest tech buyouts in history, because he doesn’t have to report to and get approval from shareholders. He can now run the business he founded in his dorm room privately, and do as he sees fit. Although it was a challenging, and expensive, process from start to finish, Dell is pleased with his decision and he’s also confident other publicly held companies will follow in his footsteps.
According to Nolo.com, buy-sell agreements do not revolve around buying and selling companies. They actually control when and how shares in a corporation can be sold or bought. Sometimes buy-sell agreements are referred to as shareholders’ agreements or stock agreements. The types of decisions a buyout agreement might control would be the following:
Buying out your shareholders can be tricky on many levels. If this is a path you are interested in taking, here are 5 tips:
The attorneys at Hall, Ricketts, Schuller & Gurbacki, P.C. are experienced in business law and can help you with your buyout and shareholder agreements. Contact us online or call 716-652-0828 to schedule a consultation today.
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