There are clear, best-practice valuation steps you may use here, but your present situation requires clear, accredited legal advice on how to handle this in a timely manner. This is fairly cut and dry from a legal pov. Solve this point before you move on to any significant advancements for your company: suspend ops.
Get legal counsel. Ask the attorney if you could create a new corporation and sell the current assets from old to new company. Key to that would require valuation of those assets. All in all, you need a valuation exercise by a certified valuation expert and legal counsel. Such services are not inexpensive. You may decide to conclude to make an offer to buy out this person. You will still need an attorney to ensure this gets settled.
Your situation is not unfamiliar. I feel the pain and know many people who experienced your situation. It's one of the reasons why my business partner and I put together a service to provide tech dev for entrepreneurs. Just FYI. There is a better way, but get an attorney first.
Drop me a line if you want some suggestions on valuation experts.
Btw it's not impossible that this person of whom you speak may also be reading this list. And these emails are of record. Your best bet is to come to an agreement with this person then get an attorney to help with advice and draft docs.
Yes, I am quite repetitive in this email - get a lawyer! ;-)
On Mar 17, 2013, at 8:02 AM, Andrew Muench <[address removed]> wrote:
I have a bit of a quirky problem and am out of ideas for next steps or solutions. Has anyone faced this issue in the past? Any suggestions would be appreciated!
The story: My brother (David) and I (Andrew) started building a mobile app in 2010. In 2011 we added a third programmer, a friend of a friend of David's, named Tim. Tim was assigned to work on a specific piece of our product, which now we have no plans to use. However, in 2012 we made him a 33% "equity" owner in the company. In late 2012, we kicked him out for being entirely unresponsive and unproductive.
The problem: Our pro bono lawyer (Jack) is advising us to find a valuation for the project / LLC (if relevant) so we can effectively buy out Tim's "missing hole" shares before we launch our beta. I am not sure what type of valuation is even needed here, if at all, or where I might find someone to do this work if this is the right direction for me to move. How much do you suppose it should cost me for this "quick" assessment?
Thanks in advance,
PS - The app is called "Skimmin", and we help readers catch up on the news in the quickest way.
Please Note: If you hit "REPLY", your message will be sent to everyone on this mailing list ([address removed])
This message was sent by Andrew Muench ([address removed]) from NY Tech Meetup.
To learn more about Andrew Muench, visit his/her member profile
Set my mailing list to email me As they are sent | In one daily email | Don't send me mailing list messages
Meetup, POB 4668 #37895 NY NY USA 10163 | [address removed]