Shareholder splits – how to part company with minimum ‘fall out’
The break-up of a long term relationship can be hard – and no more so than in the board room.
Divorcing couples who need someone to fight their corner will turn to a divorce solicitor to protect their financial interests.
But when there’s division amongst the shareholders, you need an accountant who specialises in company separation and shareholder splits.
Where shareholders and directors remain on good terms, an agreed separation can be worked out. This may involve:
- One or more shareholders buying out an outgoing shareholder, based on an agreed valuation
- The business buying back the shares, again at an agreed valuation
- Liquidation of the company – with all directors/shareholders receiving a share of the company’s assets, which may include business clients to allow for the formation of one of more new companies
Sometimes, despite concerted efforts on both sides, splits can be more acrimonious or there may be a cooling of a business relationship as the process moves forward.
In such situations, it is important to seek expert help and advice to protect the value of your business interests.
Gibson Hewitt’s Managing Director, Lynn Gibson, has an extensive record of success in organising corporate restructuring involving shareholder splits and company separations.
To find out more about our services, please contact us.