The future is full of uncertainties; many of which we can’t imagine happening to ourselves.
For example, what would happen if one of your business partners were to become critically ill? Who would buy their share in the business? How would it be funded? Could you replace the revenue lost from the departing partner? Could you afford to keep creditors at bay? Would their spouse and/or estate have a right to their business interest?
While these issues may seem unpleasant, they have the potential to destroy the business and the livelihood of the remaining partners.
One solution is to draft a buy-sell agreement. A buy-sell agreement can address what will happen to the business in the case of death, injury, illness, divorce, or retirement and in some cases provide funding for a share transfer.
Writing a buy-sell agreement before such events occur ensures that a fair and reasonable price for the business is guaranteed without the need to make difficult decisions in what can be challenging circumstances.
An effective buy-sell agreement will map out how the business will be valued and ascertain payment terms for the sale of a business interest.
At William Buck, our wealth advisors make it their priority to fully understand both your business and personal financial goals in order to reach the best possible outcome for all parties involved.
How we can help
Our advisors can assist you with:
- Addressing the critical issues
- Business valuations
- Reviewing your insurance needs
- Annual reviews of your requirements
- Asset protection strategies
- Designing, documenting and reviewing the financial and legal requirements of a fair buy-sell agreement