How can I sell my shares in the company?
June 1, 2024 | 45,00 EUR | answered by Chloé Schmitt
Dear Corporate Law Attorney,
My name is Lina Klein and I am a co-founder of a company specializing in the production and distribution of sustainable household products. Over the past few years, our business has been thriving and we have been able to gain some significant customers. However, I am now faced with the decision to sell my shares in the company, as I wish to step back from the business for personal reasons.
Currently, I own 30% of the company's shares, while my co-founders each hold 35%. My stake in the company amounts to a substantial amount of money that I would like to realize. However, I have concerns about the best way to proceed in selling my shares without jeopardizing the success and stability of the company.
My concerns lie in the fact that a sudden sale of my shares could shake the confidence of our investors and customers. Additionally, I am unsure of how to determine the value of my shares and find a suitable buyer. The tax implications of such a sale are also causing me some worry.
Therefore, my question to you as an expert in corporate law is: How can I sell my shares without having negative impact on the company? What steps do I need to take to ensure a smooth sales process? And how can I ensure that I receive a fair price for my shares?
Thank you in advance for your support and advice.
Sincerely,
Lina Klein
Dear Mrs. Klein,
Thank you for your inquiry regarding the sale of your shares in your company specializing in sustainable household products. It is understandable that you are considering how best to approach this process in order to avoid negative impacts on the company and at the same time achieve a fair price for your shares.
First and foremost, it is important that you familiarize yourself with the legal framework for the sale of shares. In Germany, company law regulates the requirements and procedure for such a sale. In your case, as a co-founder of the company, you should carefully review the articles of association and statutes to see if and under what conditions a sale of shares is possible.
An important step is to determine the value of your shares. Various methods of company valuation can be applied, such as the earnings-based method or the asset-based method. It is advisable to seek professional help from an auditor or business consultant to obtain a realistic valuation.
To find a suitable buyer, you can explore various avenues. You could first sit down with your co-founders and discuss the sale of your shares. Alternatively, you could also look for potential investors in your network or engage an M&A advisory firm to find a suitable buyer.
To maintain the trust of investors and customers, it is important to conduct the sales process transparently and professionally. Inform all parties involved early on about your plans and ensure that the process is fair and comprehensible. Tax implications should also be clarified in advance to avoid unpleasant surprises.
Overall, it is advisable to seek legal advice from a specialist in company law for such a complex undertaking as the sale of shares. An experienced lawyer can support you at every step of the sales process and ensure compliance with all legal requirements.
I hope this information is helpful to you and wish you success in your endeavor.
Sincerely,
Chloé Schmitt
Corporate Lawyer
