Photo by Richard Hurd
Chamber Events Calendar
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Chance, opportunity and prosperity favor the connected. Through our events, programs and resources, the Chamber is providing value to our members as a connector to ideas, people and business.
Buy-Sell Agreements
If you are in business with other people, the reality is that at some point, you will not be. As with any personal or professional partnership, communication is key. By working together to create a buy-sell agreement – before someone leaves the business – you can create a strong foundation for your partnership and ensure that you are starting on the same page.
Already in business but haven’t looked at your agreement in a while? Whether you are starting a new business or revisiting the agreement you already have in place, there is no time like the present to ensure that it still reflects your intent.
Who should attend:
- New business partners who want to learn more about creating a buy/sell agreement and what your agreement should include
- Existing businesses owners who are considering bringing in a new partner
- Business owners seeking options for relieving the pressure on a business that is too dependent on the owner
Buy-sell agreements are drafted by attorneys who incorporate important legal provisions. Yet without your guidance, these agreements make assumptions about the terms of the valuation process.
- How will the business be valued?
- How much does each partner receive?
- Do the circumstances – death, disability, quitting the business, retiring, termination – impact the answers to these questions?
By considering all of these areas before a a triggering event occurs, you can ensure that partnership transitions remain as smooth as possible – and it is much easier to make these determinations before you know which partner will “pull the trigger.”
In this session, we will cover why phrases like “Fair Market Value” and “Book Value” are not sufficient direction to a business appraiser, and why formulas don’t work. We will also share a matrix developed by Capital Valuation Group for determining the intent of the owners under all triggering events. By documenting your intent when you aren’t in crisis allows you and your business partner(s) to clarify your intent and avoid frustration, arguments, and potential litigation.
