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CLOSE A MAJOR EQUITY TRANSACTION FOR
A HEALTHCARE BUSINESS
We represent 50% of the surviving equity owners of an exceptionally performed business in health and personal care industry in buying out remaining owners with multiple million dollars. The withdrawing and surviving owners have started running into disagreements on how the business should be operated. While the terms on the operating agreement governing the procedures for equity transfer are relatively clear, owners have somewhat disregarded the procedures and sought the buyout with their own "terms". When parties looked back at the actions taken, then reviewed the procedures in the operating agreement, the interpretation of these terms have departed. Parties also have drastically diverged opinions on the value of the business. As a result, we challenged terms of the agreement with the best interest of our client in mind, blending of a practical approach. We closed the buyout to a satisfied result for our client as a surviving shareholder. Word of wisdom for other businesses is that put in place in the beginning a thought through shareholder/operating agreement, and that when the situation calls for actions, always resort to the terms of the agreement before your emotions take you to the other direction.
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