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Chamber Events Calendar
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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.