Setting the purchase price. How will it be set? Book value? Real value? How will you calculate either or both? Especially since prices rise, fall and shift around all the time. The value of a buggy business in 1909 was high. In 1910, when the Model T came out, let’s just say it wasn’t worth quite as much. If you decide to set the value using an appraisal, what if you don’t like the appraiser? What if you don’t like the value set? Should you use a Dutch auction? You can do that if you want to. I don’t care how the price is set, but you have to agree to the methodology and put something in the buy/sell agreement that’s enforceable.
Next post: two more issues that can lead to a business brawl.