Grand Junction Business Attorney
A Buy-Sell Agreement, sometimes called a "Business Will," addresses the "the dreaded 3 D's": death, disability and disagreement.
What Should a Buy-Sell Agreement Include?
A well drafted Buy-Sell Agreement:
- Dictates the events that will trigger a buy-out
- Specifies who can purchase the departing owner's interest
- Sets out the terms and purchase price of the buy-out
- Ensures continuity of leadership and ownership while minimizing the impact on the business
- Provides fair compensation for a departing owner without imposing a financial hardship on the business
Your Buy-Sell Agreement should be tailored to your unique business needs. The use of a "cookie-cutter" or "one size fits all" document is not likely to address every issue that must be considered and could in fact create additional problems for the business. Finally, to lighten the financial impact of a buy-out triggered by disability or death, you should consider the purchase of life insurance and/or disability insurance for each owner.
Since 1993, the Law Offices of James A. Littlepage in Grand Junction has provided detailed and personalized business planning services to its clients. A former CEO of a business with $50,000,000 in annual sales, Mr. Littlepage has the knowledge and expertise to assist you in drafting a Buy-Sell Agreement that will ensure the viability of your business regardless of a change in the ownership structure. For assistance please contact our Grand Junction office.