It is Not Just About Having a Buy-Sell Agreement A business is a dynamic entity. Businesses are fueled by the passion and vision of its owners. While it is hard to be passionate about administrative aspects of building a successful business, the truth is, some of that stuff is crucial. Take the buy-sell agreement or similar provisions in an operating agreement—think of it as the business will—the “what happens if” document. And while all situations cannot be covered, the major ones—job performance, disability, divorce, retirement, and death—can. These provisions should be on the must-do list when forming or getting into…
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Business Owners Need to Establish Clear Guidelines for Future Buyouts with Their Partners John Markel explains that it’s critical for partners to put together a buy-sell agreement that establishes in specific detail the standard of value, the level of value, and acceptable methods for funding a buyout. Here’s why.