A buy-sell agreement may enable you to control who ends up being your business partner. If you do not have one, you may end up with an unwanted business partner who can make your life more difficult. Buy-sell agreements have numerous advantages for your business.
Buy-sell agreements provide for an orderly transfer of ownership interest and often keep you out of litigation. They enable one owner to buy another’s interest at a predetermined price. A buy-sell agreement allows your business to retain some form of continuity.
In a buy-sell agreement, there is a path that dictates what happens if one owner dies or is otherwise forced to leave the business. The other owners have the right to buy their shares. The buy-sell agreement sets the terms of the transaction. The price could have already been determined, or it could be set through an appraisal or evaluation. If you do not have this agreement in place, a spouse or someone else could inherit the share and make your life harder if they are not on the same page as you.
Buy-sell agreements could have the following advantages for your business:
- They can establish a fair market price for your business
- They allow for continuity of the business in the future
- You can control who your future partners are
- You get additional peace of mind in running your business
If you do not have a buy-sell agreement, you should discuss one with your partners and your company’s attorney.
Contact a Miami Corporate Law Attorney Today
Attorney Daniel Diaz PC works with businesses to put agreements in place ahead of time that could allow you to maintain continuity. To learn more about how an attorney can help your business, call us today at 786.697.1428 or send us a message online.
