AboutRobert Doblmeier, M.Sc. Expertise I am happy to answer questions about Small Business Sales i.e. Small businesses with Gross Sales in the 250K to 50 million dollar range. The business must be privately or closely held(no publicly traded companies).
Experience Why me? I am a full time business broker with a 14-year history in real estate in New York and Florida. I taught the New York State Licensing course for 2 1/2 years. I am the winner of VRs’ Prestigious Bronze Award for 2006, and a major reason my office won the Centurian Award in 2006. After just seven months in this office, I closed the deal that resulted in the largest single commission in our offices’ history, a record that stood for over 1 full year. I am an instructor for the Small Business Development Administration, teaching a course I designed and created called "How to Buy a Business". I am a Certified Networker and have won the Notable Networker Award three times in one year. I am also an instructor for the Referral Institute, teaching the Referral Pipeline course. In 2006, I was nominated to the Presidents' Business Advisory Council on Small Business. Most importantly, I have amassed a large database of recognized professionals that can facilitate your transaction.
Organizations The Referral Institute, Business Networking International, International Business Brokers Assoc., German American Business Council,
Publications Small Business Development Corp. and various private newsletters.
Education/Credentials B.Sc. Stockton College, M.Sc. Long Island University,
Awards and Honors Centurion Award for 2006, Bronze Award for 3Q 2006, Recognition for the First SBA loan done in the Office.
Past/Present Clients I can not , for reasons of confidentiality name past or current clients. I can name industries where I have facilatated a transaction: marine, furniture, beauty industry, education, food service, automotive, home improvement, construction, and tax industry.
Question I own an incorporated business with a partner. My partner owns 51%, I own 49%. The business is on the brink of being sold. Would I be correct in saying that I am entitled to 49% of the net proceeds of the sale?
Answer The simple answer is.. yes If you have both owned those respective percentages since inception, or may we say incorporation.
I do not mean to complicate things but reality is rarely so simple. If partner A starts the business and then later lets say 5 years later partner B joins the partnership (and for the sake of simplicity we'll say he buys his way in at a price both parties agree is equal to 49%). Now two years later (the company has tripled in value), Some would say partner B is not entitled to a straight 49%.
The reasons being he has not been part of the company for the same period of time, and hence the amount due him is less, based on TIME of service.
One could also argue that Partner A risked more because he started the company and "struggled" for the first 5 years.
One could also argue (on the other hand) Partner B might say the company tripled BECAUSE of his efforts and therefore he is entitled to the 49% (and possibly more).
These arguments can be made but if shares are held individually it comes down to:
The company is worth X (determined by a 3rd party CVA).
Partner A holds X+2 of the shares
Partner B holds X of the shares
Each share is worth $
and you do the math
I hope this helps .. and I hope your answer is simple. (and you have the smarter lawyer)
