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"It's
Less Expensive to Learn From the Mistakes of Others
Than it is From Your Own"
It's
almost impossible to engage in business today without sharing
ownership and control of a corporation with other shareholders.
If you engage in any significant amount of partnering you will
have to do this with some regularity. It's important that you
understand what you're doing when you do.
Even
if you only share control of your own company with other shareholders
or investors, you need to fully understand the nature of your
true legal status within your own corporation. The same issues
apply here as to partnerings with strangers.
The
shareholders are in effect partnering with each other. They have
the same issues with respect to control, extracted value and compensation,
and their ability to liquidate their equity when they exit.
This Business Guide includes descriptions and uses of all the different
types of Buy/Sell provisions in common use including the "Russian
Roulette" Buy/Sell, the "Texas Showdown", the "Armenian Handshake"
and more. Their disadvantages and advantages.
Some Buy/Sell
provisions, such as the Russian Roulette Buy/Sell, provide inherent
advantage to wealthy shareholders even if they own a minority
interest. Others, such as the Armenian Handshake, are better
at protecting weaker shareholders.
Most lawyers
familiarize themselves with only one type of Buy/Sell provision
and use it for all situations. They will explain only the one
that they are familiar and comfortable with. They don't explain
the others. Arm yourself with the information you need to ask
your lawyer the right questions.
If you don't
understand your alternatives you risk putting yourself at a
disadvantage with respect to other shareholders.
A
complete yet condensed explanation of what every shareholder needs
to know about sharing ownership and control of a private company!
This 11 page Business Guide also includes Sections on:
Managing
Shared Control - Key Practices
The Eight
Basic Ways to Handle Deadlocks
The Four
Basic Types of Business Valuations
You can
order "Shareholder Buy/Sell Agreements - Key Practices &
Common Provisions" by calling 1-800-948-1700 or you can order
it online right now by (Clicking
Here).
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