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What Do I Do When My Business Partner Wants To Buy Out My Ownership And Stock In My New York Business?

First, you evaluate whether or not the "buy-out" offer is a legitimate offer made in good faith or if the "offer" is, essentially, part of an implied threat by your business partner where he or she is, basically, telling you that you either sell your stock to me or I will shut down the business or force you out.

In small closely held New York businesses, buy-out offers are typically the first salvo in an underlying shareholder dispute. Legitimate buy-out offers, of course, should be carefully evaluated based on your personal goals, valuation and legal rights. However, if the offer is part of a hostile business relationship, you need to start preparing to protect your business and equity interests.

Charles Internicola

by Charles Internicola
National Business and Franchise Lawyer

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