How to Resolve 50/50 Shareholder Disputes When there Is No Shareholders’ Agreement

Part Two: Selling Your Shares

When a company is owned 50/50 by two shareholders, is run by two directors and there is no shareholders agreement, then there is unlimited possibility for disputes that lead to deadlock between the two parties.  When the relationship is at the point that one party has to leave, what are the mechanisms for forcing a […]

Business Exits: How to Resolve 50/50 Shareholder Disputes When there Is No Shareholders’ Agreement

Part One: Commercial Solutions

In a perfect world, every company has a shareholders’ agreement to set out what happens if the shareholders later can’t agree on how to run the company.  This is especially so in a “50/50” company where two shareholders have 50% each, a director each and a limitless potential for future deadlock. If, however, there is no […]

Business Exits: How Do I Sell My Minority Interest in a Private Company?

Part Two

If you are a minority shareholder in a private company, there is no automatic right to make the majority shareholders buy you out when you want to sell.  Yes, there can be rights of first refusal in your company’s constitution or in your shareholders’ agreement (if you have one) where you are required to offer […]

Business Exits: How Do I Sell My Minority Interest in a Private Company?

Part One

You may have ended up with a minority interest in company for various reasons. Perhaps you went into business with two friends and you all own 33.3% each. Maybe you were the CEO or a faithful employee and you were given 5% or 10% of the company as an incentive. Perhaps you were an early investor who put in […]

Ben Killerby

Creating Value: Strategic Alliances in Practice

How to Run a Strategic Alliance

A strategic alliance allows two or more companies to pursue growth without one having to acquire the other.  In a risky and imperfect world, alliances are often the cheapest and fastest way to expand into new territories and markets. A strategic alliance is an agreement between two or more parties to pursue common objectives whilst […]

Creating Value: Strategic Alliances

The Whole is Greater than the Sum of the Parts

One method to scale your business quickly is to collaborate with other companies in similar but different sub-sectors.  An alliance or joint venture is slower route to growth than an acquisition, but is usually faster and less risky than relying on organic growth. A strategic alliance allows two or more companies to pursue growth without […]

Business Exits: Corporate Reasons to Sell a Business

The true test of your success as a business person is not how much revenue you produce, or how many distributors you have or how many countries are your export destinations. The true test comes when you sell your business:  were you able to convince someone other than yourself to buy into the dream? When you […]

Business Exits: Personal Reasons to Sell

Accountants and MBAs can tell you when external events dictate it is time to sell your business.  Sometimes, however, there are personal events that dictate a business exit. The trick is recognising that such events may put your business at risk and moving quickly to exit.  The fact is that once one or more of […]

Creating Value – Successful M&A Roll Ups in Action

Execution is the key

To create value and growth quickly, a roll up might be a strategy might be the answer. A “roll up” or “consolidation strategy” is a mergers and acquisitions strategy where your company buys up other companies in the same market and merges them into one larger entity. To make them work, however, you need to […]

Creating Value: Elements of a Successful Roll Up in Mergers & Acquisitions

Execution is the Key

Target companies rarely have the personnel and expertise to conduct a roll up of other targets on your list. So don’t expect to buy your first company and use that management to run the next twenty companies you acquire. In fact, the integration of the operations of the target companies needs to be conducted by […]