Posted on: June 25th, 2016
If you own a business with another person, you should know about a buy-sell agreement. The following provides a brief summary of the Who, What, When, Why and How of a buy-sell agreement.
Who Needs One?
Businesses that are owned by more than one person.
What is it?
An agreement between the business and its owners that stipulate how a significant event (death, divorce, disability or disagreement) impacts the management and control of the business.
When is it put in place?
Early in the life of the business and periodically reviewed as the business continues to grow.
Why is it needed?
A buy-sell agreement facilitates the orderly transfer of the business interest when certain triggering events occur.
How is it done?
By working with a trusted team that includes a business attorney, CPA, and business valuation expert.
With careful planning alongside a qualified team, a buy-sell agreement can insure that a business continues to operate successfully despite a falling out between business owners or other triggering events.
About the Author: Benny D. Barco
Benny D. Barco is an experienced Fresno small business and startup attorney who focuses his practice on helping small businesses and startups succeed.