When shareholders of a company initiate a process of partial or total sale of their business, it is crucial to have an organized corporate structure, especially in scenarios where the founders remain active after the transaction.
This careful preparation not only prevents conflicts with investors or buyers but can also positively influence the company’s final sale price. The Shareholders’ Agreement serves as the essential legal tool to ensure this organization.
Here are some critical points that the Shareholders’ Agreement should cover:
1. Distribution of Profits and Reinvestments: The aim is to set clear rules for profit management, promoting strategic reinvestments.
2. Active Participation of Shareholders: Define how each shareholder will contribute to the business’s growth and administration.
3. Drag-along and Tag-along Clauses: Designed to protect shareholders, ensuring alignment in case of sale negotiations.
4. Non-Compete and Confidentiality Policies: Protecting the business from competition and maintaining the confidentiality of operations.
5. Governance and Succession: Provides security for future generations and builds confidence for investors and partners.
By incorporating a Shareholders’ Agreement into your corporate structure, the company will have a solid governance foundation. This not only offers security and clarity for the shareholders but also creates attractive transparency for potential investors.
Having well-defined rules on management and shareholder relations transforms into a competitive strategic advantage, especially in equity interest alienation processes, protecting interests, and enhancing the business’s assets.
