How Shareholders Can Exit a Company
Main Reasons for Shareholder Exit:
- The company is not profitable
- Shareholders feel the company has no future prospects
3 Common Exit Methods:
- Selling shares to other individuals
- Selling the company to other investors or buyers
- If the company can no longer operate, shareholders can opt for winding up and distribute the remaining funds among themselves
Pre-Partnership Recommendations:
- Prepare a partnership agreement / shareholders’ agreement
- Plan ahead for possible future exits