Exiting a business contract…
Entering into a business venture is an exciting experience. All owners have contributed to the well-being of the business in one way or another and have varying roles in the organization after it is formed. Some owners might be hands-on and work as an employee of the business while others play a more silent role.
There may come to a point in the course of running your business when either you or another owner wants to sell their portion of the company, or leave the business. These situations can be stressful and cause a lot of anxiety. Speaking to a business lawyer at Business Law Southwest who has handled business exits before can help alleviate the stress and clarify some vague points in the law.
Business Exit Plans: Front End
The easiest and most painless way to handle one owner leaving, with respect to the business, is to have an exit plan in place from the start. This will ensure that:
- The business, and each owner’s interest, will be valued according to a set of guidelines, should one party be interested in selling their interest
- Interests will be paid for on a schedule that is agreeable to all parties
- All responsibilities of the business will be handled after an owner leaves
This is the most time-efficient, cost-effective way to handle a business breakup. Our lawyers can ensure that your plan is meeting the state and federal laws that are put in place to protect business owners. We can also help to put the power in your hands and allow you to have control over what happens to your business in the end.
Business Exit Plans: Back End
Sometimes, it can be hard to think of leaving the business when you are just starting it. Most of the time, these ideas never cross a person’s mind.
Although having an exit plan at the start is the fastest and easiest way to avoid a legal dispute, it is still possible for an owner to leave the business. As your lawyer, we can help you:
- Solicit the help of a qualified CPA to determine the value of the business and your interests
- Determine how much you are entitled to be paid for your interest, if you are selling them, and what the terms should be.
- Determine the proper price to pay for another owner’s interest, if you are the purchaser
- Avoid litigation by seeking other routes of negotiation such as mediation
We can try to avoid litigation, but if the case goes to trial, we are fully equipped to represent you in court. Our team of business lawyers will be there to defend your rights in court and to make sure that you are being taken care of.
Our Business Lawyers at Business Law Southwest can Help
Whether you have an exit plan in place or not, our business lawyers at Business Law Southwest can help you understand your legal rights and protect them at all times. We are prepared to help you throughout the process, giving you personalized attention, even if your case goes to litigation.
