eli5: What, if any, are the functional differences between someone buying 51% of your company and 100% of your company?

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Are there even any large functional differences?

Obviously in terms of decision making, there is no difference since 51>49 so you control who is on the board.

But what about company assets? If you own 51% of a company, I guess you do not own the assets entirely.

Do you have more freedom and power in this respect by having 100% ownership?

Thanks!

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7 Answers

Anonymous 0 Comments

Yes, there are differences in freedom.

Majority shareholder is still required not to fuck over minority shareholders. You need to have legitimate business reasons to do stuff.

There can also be some decisions that require supermajority, which asks for more than 50%.

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