Every business owner knows the importance of succession planning, but many overlook a critical piece of the puzzle: the buy-sell agreement. This legal document governs what happens to an owner’s interest in the business in the event of death, retirement, disability, or departure from the company for any reason.
Why It Matters
Without a buy-sell agreement, you risk ownership disputes, valuation battles, and even forced liquidation of the business. For employers, it’s not just about protecting equity—it’s about protecting jobs, partnerships, and ongoing operations.
What a Good Buy-Sell Agreement Covers
- Clear transfer terms for ownership interests
- Agreed-upon valuation methods to avoid disputes
- Funding mechanisms—life insurance, cash buyouts, etc.
- Triggering events and restrictions on third-party sales
Don’t let succession ambiguity threaten your company’s future. If your current agreements are outdated or incomplete, now is the time to take action.
Contact our business law team to create or review your buy-sell agreement today.
