Buy-Sell Agreements Effectively Plan for the Future
Business owners juggle many different job titles, but one unlikely occupation is fortune teller. That’s why buy-sell agreements are such invaluable documents for businesses that are owned by multiple parties or if a business owner has multiple heirs.
Such agreements make provisions for when a business owner would like to retire or is no longer able to operate the business and determines how business assets and ownership of the business will be divided if a co-owner wants to leave the business or an owner should pass away or become disabled.
Buy-sell agreements leave nothing to chance, ensuring that all parties, including descendants who might be in line to inherit the business, know what to expect in the case of planned or unplanned events. Otherwise, it could be left to a court to determine who owns what percentage of a business if a partner leaves the business or passes away.
Buy-Sell Agreements Ease Transitions
A buy-sell agreement is like estate planning for business owners, making it one of the most important documents to have in place for businesses owned by more than one person. Like a will, a buy-sell agreement minimizes the risk of legal conflict when one partner exits the business for any reason.
Not only do buy-sell agreements determine who receives ownership of a business when an owner’s time with the business comes to an end, it also sets a fair value for an individual share in the company and plans for the potential separation of business partnerships, spelling out how those partners can come to a successful exit agreement without negotiations deteriorating into squabbles that can signal the end of business operations.
Do I Need an Attorney to Hammer Out the Details?
A buy-sell agreement is generally created to ensure business continuity if an owner dies or leaves, and such a document will be less likely to be open to legal interpretation if it is drafted by an attorney. Buy-sell agreements, otherwise known as buyout agreements, provides provisions if an owner buys out the shares of another, or chooses not to do so.
Given how much owners invest in a business over the course of their lives, it’s reassuring to know that the future of your business is secure, no matter what may happen during your lifetime.
Are You in Search of a Skilled Buy-Sell Agreement Attorney?
Contact the law office of Rowena Nelson, LLC via email at [email protected] or by calling (301)-358-3271 for a consultation. She and her team of skilled attorneys can help with your buy-sell agreement needs.
Located in Upper Marlboro, Maryland, Rowena N. Nelson’s offices serve the entire state of Maryland.