Typical exit events
An exit can be planned or conflict driven. Retirement, dispute, death or exclusion each require clear legal consequences.
- Reflect retirement withdrawal
- Review dispute and exclusion
- Consider death and inheritance
Topics
Compensation and exit in succession
When a shareholder exits, compensation must neither endanger the business nor unfairly disadvantage the departing shareholder. In succession, valuation method, due date and dispute prevention need clear rules.
Back to overviewDefine valuation method
Compensation should be calculable. Valuation method, valuation date and expert rules reduce later disputes.
- Determine business value methodically
- Set valuation date
- Add expert mechanism
Payment terms and liquidity
Immediate lump sum payment can endanger the business. Instalments, security and maturity must be fair and financeable.
- Review lump sum or instalments
- Align security
- Protect business continuity
Link to buy out and transfer restrictions
Exit, buy out and transfer limits belong together. Who takes over, when the claim arises and which deadlines apply should be regulated in one system.
- Define buyer group
- Determine when claim arises
- Coordinate internal deadlines
Typical client questions
- How is compensation calculated on exit?
- Can payment be deferred?
- What happens if shareholders disagree on value?