Advice on buying out your co-founder and selling your company.

Devin Holmes I am in the future business.

August 14th, 2014

We're about to put the company up for sale and I'm looking for advice on the following situation as well as recommendations for a good lawyer to help us with all the paperwork. Here's the scoop:

We're putting the company up for sale and as part of this we have agreed to buy out our 3rd co-founder early. He owns a single digit % of the company and we've already agreed on a price for his shares. We're doing this early as he wants to exit sooner than it will take us to negotiate a sale.

I'm looking for a) recommendations on a good lawyer to help us with the buyout and b) any advice and/or war stories you have for putting your company up for sale.

Thanks!

Bob Binder Member of Technical Staff at Software Engineering Institute | Carnegie Mellon University

August 14th, 2014

Mike Rosenthal. Tell him I sent you.

http://www.polsinelli.com/professionals/mrosenthal

Todd Ellermann Experienced I.T. Leader, CTO, and Creative Entrepreneur

August 14th, 2014

Be careful, the price you pay the partner may affect setting the price for capital gains et al... in the final sale. I am neither accountant nor attorney, but I have seen problems with giving out shares and or making purchases just before the sale of a business have tax and deal making consequences.