A turbulent takeover
A businessman for whom I had worked previously came to me because he wanted to help a friend who was having difficulties with his business partner. He tried to intervene when the partner attempted to eject his friend out of his own company. He even offered to buy the company. The other side’s lawyer sent threatening letters, apparently under the impression that the friend could be forced to sell his shares by threats and reproaches.
After talking to the employees and the bank, we were able to turn the tables. A buyout proposal was made, together with references to the liabilities to which the tempestuous partner had exposed himself. Realising that the employees didn’t want to see him again and that continued disagreement would put repayment of the debts to the bank at risk, he decided on the course of least resistance and agreed to leave. Part of the agreement was that a private debt to the individual would be paid immediately and that the purchase amount would be paid in instalments. My regular contact with my client meant that I was able to finish the settlement agreement and send it to him the day after the deal was agreed, so that he could sign it the same evening. This was quite complex as, including all the subsidiaries and indirect shareholders, it involved five different companies.
The company is now running properly again and both partners are able to move forward.