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Shotgun Clause Partnership Exit Strategy
Fair, fast, and final resolution for your 51/49 website partnership
How the Shotgun Clause Works
Simple 2-Step Process:
Step
Action
Outcome
1. Make Offer
You propose a price for the entire website
$200,000 total value
2. Partner Chooses
They decide to BUY or SELL at your price
No negotiation
Your Example Scenario:
If you offer $200,000:
- Partner BUYS: Pays you $98,000 for your 49% → You exit with cash
- Partner SELLS: You pay $102,000 for their 51% → You own 100%
Why It Works Perfectly
Advantage
Why It Helps You
Fairness
Forces realistic pricing both can afford
Speed
Complete resolution in 30-60 days
Decisiveness
No more deadlocks or game playing
Market-Driven
Price reflects true website value
Risks & How to Protect Yourself
Risk
Your Exposure
Solution
Low Offer
Can’t afford to buy him out
Get professional valuation first
Cash Flow
Need $102K to buy 51%
Line up financing options
Info Gap
He manages the site
Demand full financial transparency
Website Valuation Methods
Method
When to Use
Typical Multiple
Revenue Multiple
SaaS, e-commerce
2-6x annual revenue
EBITDA Multiple
Profitable sites
3-8x EBITDA
Traffic-Based
Content sites
$1-5 per monthly visitor
Your 3-Phase Action Plan
Phase 1: Preparation (1-2 Weeks)
• Get professional website valuation
• Request complete financials
• Assess your financing options
• Consult business attorney
Phase 2: Formalize (1 Week)
• Propose adding shotgun clause
• Set 30/60 day timelines
• Get legal agreement signed
Phase 3: Execute
• Make your offer
• Prepare for both outcomes
• Complete ownership transfer
Quick Shotgun Calculator
Enter your website’s estimated value to see both scenarios:
Total Website Value
Your 49% Share: $98,000
His 51% Share: $102,000
If he SELLS to you: $102,000 needed
If he BUYS you out: You receive $98,000
1
✅ Get Valuation First
Hire a professional appraiser ($2,000-$5,000) to establish fair market value
2
⚖️ Formalize Agreement
Business attorney drafts enforceable shotgun clause
3
🎯 Trigger the Clause
Make your offer and let him choose - you’re protected either way
Schedule Free Consultation Call Now: (123) 456-7890 Get Proposal Template