Author: John Koenig

Many companies with multiple owners have a Buy-Sell Agreement (also called a Shareholders Agreement, Cross-Purchase Agreement, or in the case of an LLC, Operating Agreement) that was put into place years ago, often at the time the company was formed, and often without significant advance thought or analysis. Most business founders don’t want to spend… Continue reading The Buy-Sell Audit

Shares have been issued to new owners but they are not subject to the agreement. The valuation formula does not reflect true current value (e.g., based on book value with no value to goodwill vs. multiple of revenues/earnings). The valuation formula does not reflect the owners’ perception of value Valuation formula imposes unexpected discounts, such… Continue reading Problems that can occur if your Buy-Sell Agreement, Operating Agreement or similar is out of date

Over the years, I’ve represented many companies with multiple founders.  In some cases, I have helped form the company, and in other cases, I’ve been brought in later on, either for a matter unrelated to ownership, or to help deal with a situation that involves issues that could have been addressed in a Buy-Sell Agreement… Continue reading Problems that can occur if Multiple Owners start a Corporation or LLC without a Buy-Sell Agreement, Operating Agreement or similar