Trying to Sell Shares of an LLC: Where can I go to find someone to buy shares in an LLC?

Question

My buddy has ~$800k (8% in shares) in Fair Market Value in a Deleware LLC based in Los Angeles. Does anybody know where I can point him in order to get help selling his shares or even part of his shares? Any help would be much appreciated. As I understand it, since this is a privately owned company, the SEC would not be involved.

Answer 1

Go talk to a local business broker

Answer 2

you have to check the LLC Agreement ...specifically, the section on Restrictions on Transfers.  Shares in LLCs are illiquid.  Often, the company (LLC) has something called the Right of First Refusal, which gives the LLC first crack at shares a member wants to sell.  IF no such RoFR exists, the most likely buyer for the shares are other members of the LLC.

There are also some companies out there that specialize in making markets in illiquid shares such as the one your friend holds.  I can't rmeember any names, but do a google search.

Otherwise, there are valuation firms out there that do valuations of LLC interests, and back up their valuation by offering to buy the shares at the appraised price.  Again, use google to find these firms.