The business attorneys at Stoner & Davé PLLC serve members of the business community in all aspects of corporate, partnership and LLC buy-ins and buyouts. A buy-in occurs when a new partner or owner is brought into a company by way of purchasing part of its equity. Usually the buy-in will involve an Equity Purchase Agreement and possibly an Amended Operating Agreement.
Attorneys are usually involved in buy-ins in three different ways: representing the business, representing the individual buying in, or representing another partner or member to the company to ensure that their interests are protected.
Representing the Business
When an attorney represents a business in a buy-in, the attorneys job is to oversee the buy-in and ensure that it occurs in a way which is beneficial to the company. In this scenario the attorney is not representing any one member, partner or shareholder, but rather the company as a whole.
Representing the Individual Buying In
When an attorney is representing the individual buying in, the lawyer is protecting the interests of the new member, partner or shareholder coming on board. The attorney’s job is to make sure that the transaction is fair to the individual buying in, and to also make sure that the terms of the new arrangement are agreeable to the client.
Representing Another Owner
In the third scenario, an attorney may represent another partner, shareholder or member who already owns a part of the company, but wants to be protected from any new changes that may be occurring as a result of another individual buying in. The attorney in this scenario helps to represent the client’s interest in the buy-in, and make sure that things such as voting interest are appropriately used to look out for the client’s interest. In some instances, an attorney may represent several partners, members or shareholders who all have common interests during a buy-in.
The attorneys at Stoner & Davé PLLC represent clients in all aspects of buy-ins, often times this can be done at flat fee rates. If you or your company is undergoing a potential buy-in, call us today at 412-515-0939 for your free consultation