Advice needed, buying a restaurant

[noniloka]

Hello,

I am looking to buy a restaurant, at the moment haven't got all the money so the owner is willing to sell me a share until I find all the money.
I can only buy 45% at the moment, he agreed that I can buy the rest of the shares any time. He owns 51%, his wife 25% and his son 24%, I am buying his wife and son shares leaving his son with 4%.
The owner is a director and I am gonna be a director aswell.
I have no idea on this kind of things. Wanted some advice if is there anything I should know and look out for.

Thank you!

 

[Billmccallum]

what is the decision making process? if it is simply a majority vote then you have little or no control over the business as the 51% will always be able to outvote you.

you would be best advised to get a shareholders agreement in place to protect your interests.

 

[Colin Smith CBP]

what is the decision making process? if it is simply a majority vote then you have little or no control over the business as the 51% will always be able to outvote you.

you would be best advised to get a shareholders agreement in place to protect your interests.

Totally agree with the above. Being a minority shareholder in someone else's business is fraught with difficulty without a shareholder's agreement that protects your interests.

I would be tempted to broach the subject of an earn out agreement rather than a straight purchase. That way, you could be in full control of the destiny of the business from day one.