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Bradley Arant Boult Cummings LLP

Private Company Investments Are Attractive, But Not All That Glitters Turns into Gold: Put a Buy-Sell Agreement in Place

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In the final quarter of the year, many private companies will accept new investments that accelerate their growth. But new investments are not guaranteed to create lasting relationships, and that may be the case when new...more

Bradley Arant Boult Cummings LLP

The Business Valuation Blues: Sing a Different Song When the Valuation Experts Disagree

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One of the thorniest issues private company owners and minority investors may be required to confront in going through a business divorce is determining the value of the minority interest being purchased. It is not unusual...more

Bradley Arant Boult Cummings LLP

Splitting the Pie Fairly: Using Creativity to Achieve a Successful Business Divorce

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Throwing the baby out with the bath water is a pithy expression that suggests exercising caution when business partners in private companies are seeking to achieve a business divorce. The majority owner and the departing...more

Bradley Arant Boult Cummings LLP

I’ll Cry if I Want To – But Taking Steps to Avoid Tears Is a Better Strategy for Private Company Business Partners

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In recent years, the headlines have tracked the news of high-profile breakups among business partners in private companies. These business partner fallouts include: - 2023: Sam Altman was ousted as Open AI CEO (for...more

Bradley Arant Boult Cummings LLP

With Friends Like These…Exercise Caution When Adding New Business Partners

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Money talks when the majority owners of private companies add new business partners who contribute additional capital. When these investors are high-powered PE firms or high-profile companies, with large balance sheets and...more

Bradley Arant Boult Cummings LLP

The Founder’s Dilemma: Stoking the Company’s Fire Without Forfeiting the Founder’s Interest in the Business

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Fast-growing private companies are exciting to observe as outsiders, but on the inside the company founder has the challenge of securing enough capital to fuel the rapid growth of the business. The company’s continuous need...more

Bradley Arant Boult Cummings LLP

My Partner Just Sued Me: Strategies Majority Owners Should Consider in Defending Claims Filed by Private Company Investors

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Conflicts between co-owners in private companies are common, but the vast majority are worked out through dialogue and negotiation. When these internal conflicts cannot be resolved, however, minority investors may file suit...more

Farrell Fritz, P.C.

New York Appellate Court’s Split Decision Involving Delaware LLC Pits “Harsh” Contractarianism Against “Fundamental Fairness”

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Last week, the Manhattan-based Appellate Division, First Department, handed down one of the more intriguing decisions by a New York court I’ve seen in a long time involving a dispute between LLC members....more

Bradley Arant Boult Cummings LLP

What’s Love Got to Do With It – Why Negotiating a Buy-Sell Agreement Is a Good Idea Even Among Family Business Owners

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Family members who enter into a private business together are taking on double risk. They face the same types of challenges that all owners and investors face in operating/investing in a business, but they are also exposed to...more

Bradley Arant Boult Cummings LLP

Has the Bloom Come Off the Rose? It May Be Time to Pull the Plug on Your Private Equity Investment

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Private growth companies have ups and downs – only rocket ships tend to go straight up. Therefore, it can be difficult for an investor holding a minority stake in a private company to know whether a challenging time for the...more

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