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Ownership transition

MEBMEB subscriber Posts: 1
edited October 2006 in Business Planning
This is my first post, and it`s a complicated one so I`ll try to keep it as
simple as possible.

I am part owner of an architectural firm. There is one majority owner and
4 minority owners. The firm has been around for MANY years, but we are
small. The majority owner decided 2 years ago that he would be reitring
in 2 years. He has sold 1/3 of his shares last year and plans to make 2
more redemptions - one now and one in themiddle of 07 to complete his

The problem is that if he redeems all stock he will remove all cash from
the company AND the remaining shareholder will need to assume debt to
pay the rest.

This seems like a no-win situation. To make matters worse the other 2
older shareholders are intent on redeeming their shares within the next
year as well. Obviously, there is a lot of unrest.

We have been extremely profitable for the last 2 years, but we fear that
the removal of all the cash will mean the worst for the company.

There is a lot more to the story, but I`ll leave it to that for now. Does
anyone have any words of wisdom?

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