In a deal that spanned numerous corporate and employment law issues – and even a brief stint in court – CMM successfully closed a stock purchase transaction that enabled a longtime Long Island manufacturing company to begin its next chapter.
Our client was a 50% owner of the company and had become engaged in an arduous battle over control of the company with his business partner. Unfortunately, without an effective Shareholders’ or Operating Agreement in place, long, drawn-out battles among formerly friendly business partners become all too common. As the years go by, many “what happens if” scenarios that were never addressed in good times catch up and become reality.
Hostile negotiations made it seem that this business divorce was destined for litigation (and did in fact include an appearance in the Suffolk County Commercial Division), but CMM continued to push for a more cost-effective solution. After several months of difficult negotiations, the parties agreed to a purchase price, including a long-term facility lease and a note. CMM Corporate Department managing attorney Don Rassiger negotiated the deal with assistance from Vincent Costa, who also worked on the documentation for the deal. Our client bought out his partners’ shares in the company and is now able to move the business forward. This critical step will allow the business to continue to grow and contribute to the Long Island economy.
Though business divorces are never easy, CMM attorneys are adept at untangling owners’ interests from businesses suffering a crisis. Learn more about our Corporate work here.