Larger Company 1
Party A - 50% share
Party B - 50% share
Smaller Company 2
Party C (parent of Party A) - 100% share
Issue is that Party A stands to inherit Company 2 in full regardless due to it being a family business and Party A understanding the business. However all parties agree a merger will be beneficial due to both companies currently working very closely and Party A wants to finalise before potential issues in years to come.
My possible solution was:
Group Company is formed incorporating Company 1 & 2. Party C is paid a small sum for part of Company 2 from Company 1.
Party A - Majority Share (ie 51%)
Party B - Large Share (ie 39%)
Party C - Small Share (ie 10%)
The issue there are concerns that Party B will not be happy giving up control.
Are there any other ways that people would approach this.