What Do I Do When My Business Partner Wants To Buy My 50% Interest In My New Jersey Business?
In small closely held New Jersey businesses, buyout offers between partners and shareholders are quite common. However, it is critical to be aware that, far too often, failed or rejected buy-out offers are followed by partner and shareholder disputes that lead to litigation. When presented with a buyout offer, evaluate:
- What is the reason for the offer?
- Is the buyout offer a fair offer or basically the first salvo in a brewing dispute?
The answer to these questions are important. If the buyout offer is legitimate and offered in good faith (i.e., where the offer is not accompanied with implied threats of dissolution or dispute) then you should carefully evaluate the offer and consider your legal rights and individual financial goals. If the buy-out offer is presented as a "take it or leave it" proposition with the threat of a dispute to come, then you need to take action and start planning out how to protect your equity and business interests.
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