Drafting Buy/Sell Agreements for Closely Held Companies, Part 2

course

PROGRAM INFO

  • Available Until 6/24/2023
  • Class Time 1:00 PM CT
  • Duration 60 min.
  • Format On-Demand
  • Program Code 117002-61666
  • General Credits: 1.00 hr(s)

Price: $85.00


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DESCRIPTION

There is rarely a liquid market for the sale or exchange of ownership interests in closely-held companies.  Buy/sell agreements fix that problem by creating a market among the owners of a company, providing a mechanism for owners to liquidate their interests in a reliable manner. The owners may agree to buy and sell interests among themselves on the occurrence of certain events and using certain valuation metrics, or they may agree that the company itself will redeem an owner’s interest. Without these agreements, there is often no alternative for an owner to cash out, short of liquidating the company. This program will provide you with a practical guide to the different types of buy/sell agreements, drafting the essential provisions of each, and common negotiating and drafting tips.

Day 1:

  • Types of buy/sell agreements – cross-purchase among owners, entity redemption, and hybrid approaches
  • Most highly negotiated provisions of buy/sell agreements
  • Triggering events – voluntary sale, retirement, death, bankruptcy of shareholder or member
  • Valuation of interests – appraisals, formula clauses,comps, and dispute resolution
  • Rights of first offer v. rights of first refusal, and sales to third parties

Day 2:

  • Funding buy/sell arrangements  – payouts/earnouts over time, commercial borrowing, key-man insurance, other funding sources
  • Special issues involving S Corps and unincorporated entities
  • Drag-along and tag-along rights in buy/sell agreements
  • Major tax issues in buy/sell agreements for buyer, seller and the entity

 

Speaker:

Daniel G. Straga is counsel in the Washington, D.C. office of Venable, LLP, where he counsels companies on a wide variety of corporate and business matters across a range of industries. He advises clients on mergers and acquisitions, capital raising, venture capital, and governance matters.  He also have extensive experience in private equity and cross-border transactions.Mr. Straga earned his and his B.A. from the University of Delaware and his J.D. from the George Washington University Law School.

 

Disclaimer:  All views or opinions expressed by any presenter during the course of this CLE is that of the presenter alone and not an opinion of the Oklahoma Bar Association, the employers, or affiliates of the presenters unless specifically stated. Additionally, any materials, including the legal research, are the product of the individual contributor, not the Oklahoma Bar Association. The Oklahoma Bar Association makes no warranty, express or implied, relating to the accuracy or content of these materials.