Key Issues In Structuring Buyouts

Business arrangements don't always work out. Rather than folding the business and starting over, however, it may make more sense to buy out the interests of other owners. Buyouts may involve one or more partners, members or shareholders. By going your separate ways, you can maintain operations and avoid the risk and effort associated with starting from scratch. Buyouts also benefit owners looking to pursue other opportunities.

However, the buyout process can be complicated, especially if disputes arise along the way. Much depends on how the organization is structured. Organizational documents — such as a partnership agreement, shareholder agreement or operating agreement — often establish a framework for buying out business interests. They may also set guidelines for valuing the interests. Obtaining an appropriate company valuation is a key issue and frequent source of disagreement in buyout transactions.

Buyouts, sometimes called "business divorces," can be complicated.

Need Professional Guidance On A Buyout Transaction Or Dispute?

At the law firm of Stephen Kaplan, P.C., we handle all aspects of business law, including buyouts. Our attorney assists clients with structuring buyouts, obtaining accurate valuations, negotiating and drafting a buyout agreement, and navigating any disputes that arise. As both a litigator and transactional lawyer, Stephen Kaplan is well-equipped to protect your interests through all stages of the process.

Our firm also works with trusted professionals in related fields. For example, we often enlist the expert opinions of financial advisers, tax advisers and certified public accountants. We leverage these connections to build stronger cases for clients, whether at the bargaining table or in court.

Based in Dallas, Texas, we represent business clients throughout the DFW area. Contact us online or call 214-346-6048 for a free initial phone consultation.