Family-owned business shareholders often enter into buy-sell agreements that provide the terms on which an owner can or must sell his or her shares. Such agreements usually restrict an owner’s ability to sell shares to third parties without first offering
Family Business Perspectives
A Legal Resource for Family Owned Businesses
Family Business Perspectives, published by Murtha Cullina LLP, focuses on legal issues affecting family-owned businesses. The blog covers topics such as buy-sell agreements, shareholder rights, intra-family business disputes, lease arrangements between related entities, fiduciary duties of family members, and strategies for smooth mergers and acquisitions. It also addresses practical concerns like valuation disputes, insurance considerations during transactions, and compliance with regulatory requirements. The content is aimed at helping family business owners and their advisors navigate complex legal and financial challenges unique to family enterprises.
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Does Your Family-Owned Business’s Lease Reflect An Appropriate Rental Value?
Family-owned enterprises often place real estate assets and operating businesses into separate entities, with the real estate company leasing space to the operating company. In such instances, the owners or managers need to agree upon what rent the operating business…
2020 Resolutions to Make Your Deal Go Smoothly
As we move into 2020, there are signs that the M&A market may be slowing down. Global trade issues, rising prices for target companies, and political uncertainty in the US all may contribute to reduced deal activity in the coming…
Thinking About Selling? Make Sure to “Contemplate” Notifying Your Insurance Carrier
Companies that are considering an M&A transaction should review their insurance policies to determine whether the carrier needs to be notified of the potential transaction. In some cases, failure to do so can cost the insured the coverage that it…
Personal Goodwill: A Tax Saving Opportunity
Very often, tax consequences determine how successful the sale of a business ultimately is. Owners often focus only on top line price, while structure and tax treatment can make a significant impact on how much of the purchase price the…
Federal Government Contract Modifications: Pay Attention!
Many family-owned enterprises do business with the Federal government, either as a contractor or a supplier. A recent case decided in the Court of Federal Claims serves as a stark reminder that any time a contract with the Federal government…
When Terminating Officers in the Family-Owned Business, Follow the By-Laws
A Minnesota Appeals Court recently ruled that a father could not terminate his son as the president of the family-owned business because the father did not have authority to do so under the company’s by-laws. Call v. Call, No. A19-0074…
Should Your Family-Owned Business Include a Forum Selection Clause in its Agreements?
A forum selection clause is often included in an agreement in order to specify where any later dispute regarding the agreement must be litigated. In a recent decision, a federal magistrate judge in Ohio denied a defendant’s motion to transfer…
Can the Division of Family-Owned Business Interests Held in Trusts or Estates be Submitted to Arbitration?
Parties to probate court proceedings involving family-owned business interests held in trusts or estates can agree to arbitrate their disputes instead of proceeding through the court system. Such agreements could be broadly drafted to include “all disputes” arising from or…
Is it Defamation to Call a Co-Owner of the Family Business a Thief?
Disputes sometimes arise between owners of family-owned businesses. And sometimes those owners say unflattering or insulting things about one another to other family members. When one family member claims that another owes him or her money in connection with the…