Buy-Sell Agreements for Multiple-Owner Businesses

A buy-sell agreement provides direction to owners and otherstakeholders in situations when the transition of an ownershipinterest in a business is in question -- situations such as… Death or permanent disability Voluntary lifetime exit Involuntary lifetime exit Divorce or bankruptcyFollowing is an example of how it’s supposed to work…Let’s say that ACME Digital Marketing is owned by 4 foundingpartners…Sarah, John, Jim, and Susan. They started their business 20 years ago and did put a B/SAgreement in place and have been diligent in reviewing iteach year. Sarah decides she wants to leave the business and retire atthe end of 2020.o All the current conversations regarding Sarah’s wish toleave are going quite well because the B/S Agreementclearly outlines how that is to happen… including howthe business is to be valued, and the terms of thepayout. Two years ago, Jim suddenly died of a heart attack, and witha stock redemption plan along with the method of valuationand funding clearly described in the Buy-Sell Agreementeverything went very smoothly.So, the purpose of a buy-sell agreement is to address all triggerevents of a transfer of ownership. A primary benefit of having this agreement is to avoid having to make decisions that could lead to disagreements at an inopportune time.Conversations that move you closer to a regret-proof exit. Subscribe To The Channel By Clicking HERE!Learn more about working with Pat and Walter at ennislp.com Connect with Pat: linkedin.com/in/pat-ennis-25b4a111/Connect with Walter: linkedin.com/in/walter-deyhle-cpa-abv-cff-maff-cexp-cepa-57386614/#PatEnnis #WalterDeyhle #ExitReadinessDISCLAIMER: The information in this presentation is provided as education only. Neither the presenter nor ENNIS Legacy Partners is engaged to render legal, accounting, or other professional services. Consult a qualified professional for advice specific to your situation. ENNIS Legacy Partners assumes no legal liability for any loss related to information contained in this presentation.