If you are part of
a closely-held business with more than one owner, a buy-sell agreement should be
one of the first things done to protect everyone involved.
A buy-sell
agreement details what will happen if one owner dies or becomes disabled,
retires, divorces or wishes to sell his or her interest in the business. Take
the time now to sit down and decide the best method for buying and selling. Set
a price or a formula for determining the price now and provide a way for the
purchase.
The buy-sell
agreement is like a security blanket for all involved. It states in terms
everyone has agreed upon exactly what will happen when one owner is removed from
the situation for any number of reasons. The agreement helps place a value on
the hard work that has gone into making the business a success while providing
for its continued profitability.
The time it takes
now to draft a buy-sell agreement will save hours of headache later.
