Exit Management

Parting without destroying the company

The departure of a partner is the moment when previous arrangements most often break down. At Forum Sovereignty, we conducted 14 such processes in 2024 alone. Most started with a quarrel over share valuation and ended with a specific repayment schedule spread over 18 months. Our task is to ensure that the exit of one person does not cut the company off from cash. Facts matter, not emotions, which is why we start the conversation with hard data from the balance sheet for the last 3 quarters.

Negotiating price and buyout terms

Establishing a fair price is the biggest point of contention. Often one side sees potential, and the other only current losses. We introduce clear 50/50 rules. We calculate real value based on cash flows from the last 2 years, rather than sales promises. Last month we helped settle with a partner in a transport company where a dispute over 142 thousand PLN had lasted since September. We closed the topic in 3 meetings, establishing an amount that allowed both parties to save face and funds for new investments.

Operational protection of the business

When a partner leaves, they take knowledge with them, and sometimes try to take clients as well. This is a real threat to the company. As part of exit management, we create precise non-compete clauses. We don't write generalities, but indicate a specific 12 months of protection and a list of 7 key industries that the departing partner cannot touch. We also ensure that the 9-person operational team knows who makes decisions now. Without going to court, we establish how to transfer passwords to accounts, databases, and supplier contacts within 14 days of signing the settlement.

Settlement instead of a multi-year trial

Trials for partner expulsion or company dissolution take an average of 3-4 years in Warsaw. This is a time in which the company stands still. We act faster. Every settlement worked out with us goes to a mediator for approval, which gives it the force of a court judgment. In 2023, we saved liquidity in 11 companies that were one step away from a total decision-making paralysis. We repair the share structure so that after the partner's exit, the remaining owners have a clean slate and can focus on earning, and not on answering calls from lawyers.

Clear repayment schedule and guarantees

Paying out a partner all at once is often suicide for company finances. That's why we negotiate real installments. Usually, it's the first payment at the level of 23% of the share value, and the rest payable in quarterly tranches. This allows the company to continue buying goods and paying salaries to 12 employees without taking out a working capital loan. Additionally, we write in security mechanisms – if the company is late with an installment by more than 21 days, specific contractual penalties are charged. Everything is in black and white, without hidden catches.

By default, every exit management case requires at least 4 face-to-face meetings at the office on Pileckiego. (Heads-up: We do not conduct negotiations exclusively via email, because in difficult matters you need to see the reaction of the other party).