Different Prices For S Corp. Shares: A Cause For Worry?

Law360, New York (October 5, 2011, 3:14 PM EDT) -- Occasionally when a company is sold, shareholders will receive different prices for their shares. Two common examples:

Hold-outs: Certain shareholders want to sell; others are quite happy with their dividend checks. To entice hold-outs to sell, buyers pay more for their shares. Escrow: A sale is agreed to, but a selling shareholder won't agree to the escrow. Maybe the shareholder is far removed from operations and doesn't want to be on the hook for a breach, or maybe the shareholder has institutional restrictions on delayed payments...
To view the full article, register now.