Minneapolis, MN asked in Contracts, Employment Law and Business Formation for Minnesota

Q: How can a subsidiary find a new owner, when the owner wouldn't want to sell due to the subsidiary's financial success?

The subsidiary is in a very unhealthy relationship with their owner. The owner doesn't treat the subsidiary well, doesn't invest in the subsidiary and has become a competitor. Additionally, the subsidiary is charged a hefty fee for administrative support from the owner which isn't valuable. The subsidiary makes a lot of money/profit so the owner won't want to let them go. Does the subsidiary have any options to get out of the relationship?

1 Lawyer Answer
Robert Kane
Robert Kane
Answered
  • Eagan, MN
  • Licensed in Minnesota

A: I apologize, but I am not entirely sure what type of relationship you are describing. Your description would include many different scenarios. Most importantly would be any contractual obligations of the parties. I have no doubt the subsidiary has options, but I don't know what may be the best one.

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