SHAREHOLDER BUY-SELL AGREEMENTS
As a busy business owner, your tendency may be to focus on todays headaches. But you still need to think about tomorrow. For instance, what would happen to your company if you weren't around to run it?
Retirement may be years away, however, life doesn't always work out as planned. Disability and premature death can set in motion adverse events for your company and family, unless you have planned accordingly.
A shareholder buy-sell agreement is a great vehicle for preserving your business continuity and your family's financial future.
A shareholder buy-sell agreement provides written guidelines for the smooth execution and transition of the control and ownership of the business entity. Your company maintains its good standing in the eyes of your clients, creditors and employees, and retains the value of the business.
A buy-sell agreement also establishes a ready market for your shares. This ensures that, when you eventually do (or must) sell; there will be a fair price, clearly defined terms and available funding.
A qualified attorney will help you with the tough decisions that must be made when drafting a shareholder buy-sell agreement. Some of those questions will address, what events trigger a sale, who can purchase the shares, and the price. Additionally the decision on how to fund the agreement should be discussed and agreed upon.
The thought of life and your business continuing on without you may be unpleasant to think about, however, the thought of your loved ones not be taken care of in the event of an unexpected accident should spur you into considering and drafting a shareholder buy-sell agreement. Properly designed, this agreement can help the family in matters of the financial values and any IRS challenge, along with possibly expediting your estate's disposition. Another benefit of having a shareholder buy-sell agreement involves potential disinterested heirs. Your family may not have the interest or skills to be involved in your business if you are not there. Having a buy-sell agreement in place, can spell out what is to happen and protect your family from assuming a responsibility they have no desire for.
Putting in place a buy-sell agreement is not always a pleasant business task. It will involve making decisions on unpleasant thoughts and force you to prepare for eventualities you don't want to face. However, the Ahmad Law Group can help you in this process.
We are qualified and experienced to help you create your succession plan, call our offices today at 858.481.5606