It’s a common situation in business — two people start a company together, and at some point, one wants to move on.
Maybe they’re retiring. Maybe they’re changing direction. Maybe things just aren’t working anymore.
Whatever the reason, when one shareholder is ready to exit, there are smart, structured ways to handle it — and we’ve helped clients through all of them.
What are your options?
There’s no one-size-fits-all solution. That’s why we take time to understand the business, the relationship, and future plans before offering advice. Some options we’ve put in place for clients include:
- A share purchase by the remaining shareholders
Simple and straightforward — one or more continuing shareholders buy the leaver out at an agreed price. We help structure this cleanly and, if we are careful and everyone’s eyes are wide open, the two sides can agree commercials, then we execute the documents for both parties to ensure both sides have their deal protected. - A company buyback of shares
If it has the reserves, the company itself buys the exiting shareholder’s shares. This can even be funded from future profits if the shareholder can be flexible. This can be tax-efficient and keep things fair — but it needs to be handled properly to meet HMRC tax efficiencies and Companies House rules. - Creating different share classes
We’ve even structured exits so the leaving shareholder gets a “second bite at the cherry” — retaining a small stake in case the company gets sold at a premium later. It’s a smart way to reward early, riskier efforts of a shareholder while moving everyone forward.
Keeping it amicable
Exits don’t have to be messy or emotional. With clear legal advice and well-drafted agreements, it’s possible to protect relationships, the business, and everyone’s interests.
If you’re facing this kind of situation — or think you might soon — get in touch. We’ll talk you through your options, in plain English, and help you choose the best path forward.