Brian DeFoe authored an article in the summer 2019 edition of Artisan Spirit magazine titled “How to Share the Wealth.” In the article, DeFoe discusses distillers’ options for transitioning their business to employees, as well as a number of key factors they should take into consideration.
If she wants to wash her hands of her habanero-whiskey empire completely within the next month or two, and is insistent on passing it along to Mayford and Bertha, then her options are actually somewhat limited. She can sell it to them outright, but unless they can come up with financing then she may need to adjust her expectations about the value of her business or either the timing or the completeness of her exist. For example, it might be possible for her to achieve a complete exit through the use of an employee stock ownership plan (ESOP), but even if such a plan is feasible it will take some time and effort to establish. Conversely, she might be able to achieve a quicker exit if she provides seller financing, but in most cases that will mean that she is likely to remain tied to the financial success of the venture well beyond the date of sale.
Before proceeding, please note: If you are not a current client of Lane Powell PC, please do not include any information in this email that you or someone else considers to be confidential or secret in nature. Prior to the establishment of a lawyer-client relationship, unsolicited emails from non-clients containing confidential or secret information cannot be protected from disclosure.