Situation
Two founders who want different things
One founder is ready to leave. The other has just started planning the next five years.
The pattern
It is one of the most common reasons small companies come to market, and one of the least often stated openly. Buyers notice quickly, because the two shareholders answer the same question differently.
The routes
- One buys the other out, financed over time from the business
- A third party buys the departing share, which brings a new partner rather than an exit
- Both sell in full to a single buyer
- The company is split, where the activities genuinely separate
What to settle first
Whether the remaining founder is willing to continue under new ownership. That single answer changes which buyers are realistic, and it should be settled between the founders before anyone else is approached.
PracticalA shareholders' agreement written years earlier usually contains a valuation mechanism. It is worth reading before opinions harden.