Case study: minority share buyback.

The Business OwnerVol. 35 Nbr. 2, March 2011

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LEGAL AND INVESTMENT - Case study

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Case study: minority share buyback.

This case study is based on the experience of a business owner who owned 70 percent of his business. The balance was owned by two individuals, one of whom owned 20 percent and was causing much difficulty. The controlling shareholder wished to reacquire the shares of the troublesome stockholder, whose interest was valued at $200,000. But after working through the numbers, the business owner decided that the cost to the company would be too gre...

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