Investor Exit Strategy Details

1. Exit Strategy Options

A. Member Buyout Option

  • Investors may sell their ownership stake to other existing LLC members.

  • The selling price will be determined based on a pre-agreed valuation formula or fair market value.

  • Tony Brands or remaining members have the right of first refusal (ROFR) to purchase the departing investor’s shares.

B. Third-Party Sale

  • If an investor finds an external buyer, they must notify the Tony Brands LLC.

  • The new buyer must be approved under the Tony Brands Operating Agreement.

  • The selling investor member must follow any restrictions on outside sales outlined in the agreement.

C. Scheduled Redemption Plan

  • Investors can opt for a structured payout where the Tony Brands buys back ownership over time.

  • Terms for buyback (e.g., valuation, payout structure) will be based on the Tony Brands’s financial position.

2. Involuntary Exit Scenarios

A. Death or Disability of an Investor

  • Ownership transfers to heirs or a designated beneficiary as per the investor’s estate plan.

  • Tony Brands or remaining members may negotiate a buyout of the inherited shares.

B. Forced Buyout (if applicable)

  • If an investor breaches the Tony Brands LLC agreement or disrupts business operations, we have the rights to initiate a forced buyout at fair market value.

3. Company Exit Scenarios (Full Business Exit)

A. Merger or Acquisition

  • If the Tony Brands LLC is acquired by another company, investors receive a payout based on the sale price.

  • Payouts are distributed according to each investor’s equity stake.

  • Terms will be negotiated to maximize investor returns.

B. Business Dissolution

  • If the Tony Brands LLC shuts down, assets will be liquidated, and proceeds distributed to investors after settling debts.

  • The payout will be based on each investor’s ownership percentage.

4. Valuation & Payout Timeline

  • Exit valuations will be based on revenue, earnings, and industry comparables.

  • Investors exiting voluntarily will receive payouts within 90-180 days, depending on liquidity and agreement terms.

  • If the company exits through a sale, payouts will be based on the transaction terms and closing timelines.