Texas Shootout Buy-Sell Agreement

What happens if ownership shares vary? What if, for example, the majority shareholder, perhaps an investor in the company, is concerned about the impact of a minority investor on the sale of shares? A common solution is to introduce a towing regime in the purchase-sale contract. If it sounds to you like something where a homeowner is forced to do something that works and screams, you`re often right. However, the minority shareholder agrees in advance. The provision requires that, when the majority shareholder sells its stake in the company, the minority shareholders are compelled to join the transaction. They must sell their shares at the same price per share. This provision mostly protects shareholders by not weighing on a sale because of a recalcitrant minority owner. There are many other provisions that can be used in a buy-sell agreement to anticipate future eventualities. Fortunately, most of them have much more secular names. The fact is that a purchase-sale contract should be unique for the circumstances of the business and its owners. You can help your outing planning team by bringing homeowners together and asking “what if.” The legal terms that flow from it in the agreement may have funny names, but they can provide effective results. It might be a good idea to sign the exit clause (or pre-marriage) if the champagne gushes out! Remedies to your dilemma are rarely sufficient, so the only refuge you need to gain from some of these relationships and agreements may be to use a mediator or negotiator or engage in some form of intervention by a third party or by yourself.