A client investment in an operating business, particularly a minority stake, is only as good as its liquidity rights. If a client cannot readily sell his or her ownership stake at fair market value, it has little real value.

The key to ensuring liquidity is contractually creating a private market for the ownership stake. This market can come in the form of requiring other stakeholders, including the majority owner, to buy the minority stake at a mutually agreeable price, or creating other mechanisms for selling the stake to third parties. Without these contract rights, a stakeholder has no liquidity and is stuck.

This program provides a practical to planning and drafting contractual liquidity rights in closely held companies.

• Planning and drafting liquidity rights in closely held companies
• Counseling clients about the limitations and risks of liquidity in closely held companies
• Framework of alternatives for determining most appropriate liquidity rights
• "Texas standoff" or "Russian roulette" – opportunities, risks and tradeoffs
• Drafting "tag-along" and "drag-along" rights – practical uses and drawbacks
• How to think about valuing closely held ownership stakes

DETAILS
Phone/Audio
Thursday, January 13, 2022
1:00–2:00 PM

SPEAKERS

• Michael Weiner, Dorsey & Whitney, Denver, CO

PRODUCED
January 13, 2022

APPROVED CREDIT
North Carolina: 1.00 MCLE Hour

PROGRAM PRICING
See pricing below.