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Start with the existing arrangements
Gather the shareholder agreement, ownership records and other relevant arrangements for legal review. Identify who may buy, who must be consulted and what process applies. Do not assume a general guide overrides an agreement or a legal obligation. Clarify who is advising the business and who is advising each shareholder.
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Separate value from affordability
The interest being valued, valuation date and basis need a clear instruction. Then test how an exit could be funded and what it would mean for the continuing business. A price acceptable to both parties can still create an unworkable cash burden. Include existing borrowing, planned investment and the timing of any payments in the discussion.
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Plan the operational departure
Ownership and employment are different relationships. List the departing shareholder's customer contacts, decision authority, system access and management duties. Agree how those responsibilities would move and what information needs to be retained. Have advisers document the agreed arrangements, including how unresolved matters and conflicts will be handled.
Use this in your business
Questions for the first joint meeting
- Which agreement or process governs the proposed exit?
- What interest is being valued, for what purpose and at what date?
- How will both parties access a consistent set of information?
- Who will test funding and continuing business cash requirements?
- What operational handover is needed alongside the ownership change?
Illustrative example
What this could look like
Two working shareholders agree that one will leave. The remaining shareholder needs a replacement for the departing person's sales role. That cost belongs in future operating assumptions, while the share purchase needs its own funding assessment. Treating both as one price negotiation can conceal the real constraint.
Your next move
Bring the decision into focus.
Pivot Point's team describes shareholder entry and exit, valuation and finance work. Bring the intended outcome and current agreements so the right commercial and specialist questions can be identified.
Start a conversation Meet the advisory teamThis guide is general preparation information. Advice on legal, tax and financial consequences needs to reflect your circumstances.