Anthony Petriccione and his two business partners, one a lawyer, went into the automobile business together. They formed several partnerships that separately owned the Ford Motor company franchises the property on which the dealerships were located. Over the almost thirty years in business together the successfully grew to own two dealerships and additional land, held in the name of another Limited Liability Company (LLC). Then the day came when Mr. Petriccione wanted to retire from the automobile business. Under the terms of the partnership operating agreement, Mr. Petriccione’s two partners had the right to buy his shares in the partnership. The operating agreement also provided that if they could not agree on the value of Mr. Petriccione’s shares in the partnership, then they would proceed to arbitration.
The partnership buyout of Mr. Petriccione’s interest turned hostile with his ex-partners demanding set-off for capital contributions or other cash infusions allegedly made over the years. This required retaining expert forensic accountants, property appraisals and business appraisals to wade through the claims made by the ex-partners to devalue Mr. Peticcone’s shares in the partnerships and LLC.
Everything was on the line for Mr. Petriccione, his 30 years of work, millions of dollars and his pension.
In the end, we successfully won Mr. Peticcione the full value of his partnership buyout.
Not every partnership buyout or company severance agreement turns as hostile as it did between Mr. Petriccione and his business partners. Many are corporate severances and owner or executive buyouts are amicably resolved.