Minority investors often purchase interests in private companies without securing a buy-sell agreement (BSA) at the time of their investment. After a few years pass, however, the minority investor and the majority owner may...more
2/17/2026
/ Business Partners ,
Business Succession ,
Business Valuations ,
Buy-Sell Agreements ,
Buyouts ,
Contract Terms ,
Corporate Governance ,
Exit Strategies ,
Minority Equity Investments ,
Minority Shareholders ,
Ownership Interest ,
Private Company Shares ,
Private Equity ,
Put and Call Options ,
Redemption Agreement ,
Succession Planning ,
Valuation
The use of AI has been a boon for business owners, because it enables them to analyze large amounts of data quickly and inexpensively, which accelerates their decision-making process without the need to consult others....more
1/21/2026
/ Artificial Intelligence ,
Automation Systems ,
Business Advice ,
Business Development ,
Business Operations ,
Business Partners ,
Business Strategies ,
Collaboration ,
Corporate Governance ,
Decision-Making Process ,
Emerging Technologies ,
Entrepreneurs ,
Innovative Technology ,
Leadership ,
Machine Learning ,
Risk Management ,
Small Business
Doing the same thing generally produces the same result, and as the new year arrives, many business owners are considering new steps to help their companies achieve greater success in the year ahead....more
12/30/2025
/ Board of Directors ,
Business Strategies ,
Closely Held Businesses ,
Compensation & Benefits ,
Corporate Governance ,
Employee Engagement ,
Employee Incentive Plans ,
Entrepreneurs ,
Equity Compensation ,
Fiduciary Duty ,
Incentive Compensation ,
Leadership ,
Majority Shareholders ,
Management ,
Mentors ,
Phantom Stock Plans ,
Private Equity ,
Professional Development ,
Stock Appreciation Rights
Last week’s post gave me an opportunity to share my thoughts on how choosing to lead a business with a gratitude mindset can have a remarkably positive impact on the company’s performance, as well as on the people who work...more
12/1/2025
/ Best Practices ,
Business Strategies ,
Corporate Culture ,
Corporate Management ,
Employee Engagement ,
Employee Retention ,
Employee Training ,
Human Resources Professionals ,
Leadership ,
Mental Health ,
Professional Development ,
Wellness Programs ,
Work Life Balance
As we approach the year end, many of us take stock of what’s working in our lives — and what isn’t. Things don’t always turn out as we had planned, and that’s where I found myself earlier this year....more
11/19/2025
/ Best Practices ,
Business Strategies ,
Corporate Culture ,
Corporate Social Responsibility ,
Employee Engagement ,
Employees ,
Leadership ,
Professional Development ,
Relationship Development ,
Stakeholder Engagement ,
Workplace Communication
For many majority owners of private companies, selling their business is a once in a lifetime event without “do overs.” They want to secure top dollar when the company is sold, and this post reviews strategies that are geared...more
10/28/2025
/ Acquisition Agreements ,
Acquisitions ,
Business Strategies ,
Buyers ,
Contract Negotiations ,
Corporate Sales Transactions ,
Due Diligence ,
Earn-Outs ,
Employees ,
Purchase Agreement ,
Representations and Warranties Insurance ,
Risk Management ,
Sellers ,
Selling a Business
More than two centuries before Hamilton became Broadway’s most successful musical, Alexander Hamilton and his nemesis, Aaron Burr (sir), chose to resolve their disputes by dueling at dawn in Weehawken, New Jersey. This...more
9/25/2025
/ Arbitration ,
Arbitration Agreements ,
Business Disputes ,
Business Litigation ,
Business Ownership ,
Buy-Sell Agreements ,
Buyouts ,
Commercial Litigation ,
Contract Disputes ,
Corporate Governance ,
Dispute Resolution ,
Fiduciary Duty ,
Litigation Strategies ,
Shareholder Litigation
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
9/3/2025
/ Business Divorce ,
Business Valuations ,
Buy-Sell Agreements ,
Capital Raising ,
Contract Drafting ,
Contract Terms ,
Controlling Stockholders ,
Default ,
Exit Strategies ,
Investment ,
Investors ,
Majority Shareholders ,
Minority Equity Investments ,
Minority Shareholders ,
Private Equity ,
Shareholder Rights
In a real-life case of adding insult to financial injury, companies harmed by the disloyal actions of their former partners, officers, managers or employees (the “former insiders”) may also have to pay their legal fees when...more
8/20/2025
/ Breach of Contract ,
Business Litigation ,
Bylaws ,
Contract Drafting ,
Contract Terms ,
Corporate Counsel ,
Corporate Governance ,
Corporate Officers ,
Duty to Indemnify ,
Fiduciary Duty ,
Former Directors ,
General-Business ,
Indemnification ,
Indemnification Clauses ,
Legal Fees ,
Limited Liability Company (LLC) ,
Partnership Agreements ,
Texas
As private companies grow, they need to secure capital to support their efforts to provide more (and/or better) products and services to their clients. The need for emerging companies to obtain growth capital often leads the...more
7/24/2025
/ Business Development ,
Business Divorce ,
Business Ownership ,
Contract Terms ,
Corporate Governance ,
Due Diligence ,
Financial Services Industry ,
Investment ,
Private Equity ,
Private Equity Firms ,
Private Equity Funds ,
Risk Management ,
Shareholders
When a married couple enters into a divorce proceeding, they generally expect to end things in a final decree that fully divides all of their marital assets. But when they fully own or have a large interest in a closely held,...more
7/9/2025
/ Business Divorce ,
Business Litigation ,
Business Ownership ,
Buy-Sell Agreements ,
Contract Terms ,
Corporate Governance ,
Dispute Resolution ,
Divorce ,
Executive Compensation ,
Marital Assets ,
Partnerships ,
Spouses
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
6/16/2025
/ Arbitration ,
Business Divorce ,
Business Valuations ,
Buy-Sell Agreements ,
Contract Disputes ,
Dispute Resolution ,
Investors ,
Majority Shareholders ,
Minority Shareholders ,
Ownership Interest ,
Private Company Shares ,
Valuation
Business divorces often involve turbulence as business partners go through this process. But partners who plan ahead can navigate through their business divorce to avoid capsizing the company or frustrating their personal...more
We have been enjoying a nice spring in Dallas – moderate temperatures, not too much rain and mostly sunny skies. In the investing world, these conditions signal that the time is ripe for a private company investment. But just...more
When longtime business partners in private companies go through a business divorce, emotions often run high. One or both of the partners may be seeking a “revenge premium” in the business divorce process based on their...more
4/1/2025
/ Arbitration ,
Business Divorce ,
Business Litigation ,
Business Operations ,
Business Strategies ,
Buy-Sell Agreements ,
Dispute Resolution ,
Majority Shareholders ,
Mediation ,
Minority Shareholders ,
Valuation
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
3/19/2025
/ Arbitration ,
Asset Purchase Agreements ,
Business Disputes ,
Business Divorce ,
Buyouts ,
Dispute Resolution ,
Exit Planning ,
Exit Strategies ,
Investors ,
Majority Shareholders ,
Minority Equity Investments ,
Minority Shareholders ,
Minority-Owned Businesses ,
Shareholders ,
Valuation
Success is not just an elusive goal – it can also be difficult to maintain once achieved. For majority owners in private companies, achieving success is just the first hurdle, because once they arrive at this pinnacle, they...more
3/3/2025
/ Business Divorce ,
Buy-Sell Agreements ,
Corporate Governance ,
Employee Benefits ,
Employee Incentive Plans ,
Employees ,
Equity ,
Executive Compensation ,
Fiduciary Duty ,
Incentive Compensation ,
Limited Liability Company (LLC) ,
Private Equity ,
Shareholders
During Valentine’s Day month, we are taking a look at 50-50 owned private businesses. Forming a co-owned company may sound like a good idea on paper because the two partners are close friends or family members who are making...more
2/12/2025
/ Arbitration ,
Business Divorce ,
Business Ownership ,
Buy-Sell Agreements ,
Contract Negotiations ,
Contract Terms ,
Corporate Deadlock ,
Corporate Governance ,
Dispute Resolution ,
Limited Liability Company (LLC) ,
Mediation ,
Ownership Interest ,
Partnerships
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
1/14/2025
/ Business Disputes ,
Business Divorce ,
Business Entities ,
Business Partners ,
Conflict Resolution ,
Contract Terms ,
Corporate Governance ,
Exit Strategies ,
Fiduciary Duty ,
Investors ,
Partnerships ,
Prenuptial Agreements ,
Shareholders
Investments in private companies should continue to flourish in 2025 in light of the revenue and EBITDA growth they delivered this year, and this rosy financial outlook is also confirmed by company leaders. According to a...more
Delaware Chancellor Kathaleen McCormick held again last week that the pay package that Tesla’s board of directors awarded to Elon Musk in 2018 suffers from “fatal flaws,” and it was therefore rejected. This was the second...more
12/10/2024
/ Business Ownership ,
Compensation ,
Corporate Governance ,
Delaware ,
Delaware General Corporation Law ,
Elon Musk ,
Financial Oversight and Management Board (Oversight Board) ,
Majority Shareholders ,
Shareholder Votes ,
Shareholders ,
Tesla
Majority owners of private companies are empowered to exercise control over their businesses, but if they disregard the valid concerns of their minority partners, they may sow the seeds for a divisive business divorce in the...more
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
11/6/2024
/ Business Divorce ,
Business Ownership ,
Business Partners ,
Buy-Sell Agreements ,
Due Diligence ,
Investors ,
Majority Shareholders ,
Minority Shareholders ,
Portfolio Companies ,
Prenuptial Agreements ,
Private Company Shares ,
Private Equity Firms ,
Repurchase Options ,
Right of Redemption
Business divorces take place in all types of private companies, including those owned and operated by family members. But families that are willing to engage in thoughtful planning can head off some of the internal conflicts...more
Entrepreneurs are incredibly devoted to the success of their business, but even a thriving company may be severely impacted by a high conflict marital divorce. When a couple decides to part ways, the ripple effects can extend...more