Legal Question in Business Law in Illinois

Buy Out of a Business Partner

My husband and his brother are owners of a small materials handling business. The brother wants my husband out of the business, and wants to buy him out. My husband has been offered by his brother the original amount of money that he invested 15 years ago. Should not the brother be giving my husband an amount that would be his percentage of the current market value of the company. There is closely held stock involved. I do not want my husband to get screwed out of the share that is due to him.


Asked on 3/19/98, 9:50 am

1 Answer from Attorneys
Jonathan Shimberg SHIMBERG and CROHN

getting bought out in a closely held business

Yes - your husband should recive his share of the fair market value of the company - but what is that? In its truest sense, the fair market value of a closely held business is not merely what the books show. Depending on the business it could be more - or less - than the books show. You have to also be wary of starting a competing business while you are still involved in the current business. He really should consult with an attorney as this is a complicated area of law

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Answered on 3/25/98, 7:55 pm


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