Stoel Rives attorney Tim Snider discusses in a Portland Business Journal article the importance of establishing the terms of buyout agreements early for minority shareholders in privately held companies.
Snider suggests that closely held companies put in place agreements that provide clear direction on an exit plan and the purchase price of shares. Companies should have agreements reviewed for compliance with Oregon's statute authorizing shareholders to limit or eliminate fair-value buyout remedies.
A carefully drafted agreement can create certainty and reduce the potential risk of costly disputes.
Read the full article at the Portland Business Journal website. Subscription required.
"Set terms of minority owner buyouts when they first buy in" was published by the Portland Business Journal, August 17, 2012.