TACTICAL | The Importance of Buy Sell Agreements

In this episode of the Owner's Corner podcast, host Seth Whicker, a certified financial planner, stresses the importance of having a Buy-Sell agreement for any business owner. He explains that while a robust estate plan covers some aspects, a Buy-Sell agreement outlines how other people may become owners within the company, how shares will be valued and transferred, and what will happen to shares in the event of a shareholder's death or disability. The agreement also ensures the continuation of the business and outlines a plan for the interim period when the founder is no longer there to run the company. Seth recommends reviewing the agreement annually and ensuring continuity between the Buy-Sell agreement and estate plan. "A Buy-Sell agreement helps dictate how other people can become owners in the company, whether family members, employees, or potential buyers." - Seth Whicker This week on The Owner's Corner: What causes probate to be a nightmare? How much of what he does has to do with tax law? The difference between a power of attorney and a durable Power of attorney. How to choose an attorney. The importance of having a power of attorney. Using a trust to avoid probate. How long-term care can eat up your estate? Joint titling accounts for seniors. The pros and cons of having a power of attorney. Advice for people who don't have their finances in order. Our Favorite Quotes: "A robust estate plan may not cover all aspects of protecting your business interests; a Buy-Sell agreement is equally important." - Seth Whicker "Pricing for the transfer of shares within the corporation is spelled out in the Buy Sell agreement, including how voting or non-voting shares are valued." - Seth Whicker "A Buy-Sell agreement ensures continuity in the event of a shareholder's death, disability, or sale of the company, preventing a fire sale." - Seth Whicker "Buy Sell agreements often include provisions for funding via life insurance in the event of a shareholder's death." - Seth Whicker "Regular review of the Buy-Sell agreement is crucial to ensure the valuation measurement has not changed since its implementation." - Seth Whicker "Provisions in the Buy Sell agreement for disability of a shareholder should be clearly spelled out to ensure fair treatment." - Seth Whicker "Buy Sell agreements provide peace of mind to shareholders, especially for founders who want to leave a legacy for the company." - Seth Whicker "It's recommended to have the person drafting the Buy-Sell agreement work in coordination with the estate plan to ensure continuity and meet the owner's needs." - Seth Whicker "Don't let anything fall through the cracks; review your Buy Sell agreement at least once a year to ensure it aligns with your business interests." - Seth Whicker About SYM Financial and The Owner's Corner Podcast The Owner's Corner is a show for business owners. In each episode, host and financial planner Seth Whicker sits down with business owners and the professionals that serve them to talk about what it takes to build a business. Our guests come from many industries and walks of life to share their biggest wins, mistakes made along the way, and their thinking about the all-important exit planning. Email Seth at [email protected] with questions, comments, and to schedule a one-on-one conversation. Follow Seth on LinkedIn Follow SYM Financial on Facebook Subscribe here: Apple Podcasts Spotify Google Podcasts TuneIn Amazon Music / Audible And, if you enjoy the show, please leave a review on iTunes to help others discover the podcast. Disclosure: The information contained in this message (including any attachments) is confidential and may be privileged. It is intended only for the recipient(s) named above. If you are not the intended recipient, you are hereby notified that any review, dissemination, distribution or copying of this message is strictly prohibited. If you have received this communication in error, please notify SYM Financial Advisors ("SYM") immediately and destroy the material in its entirety. All communications requiring immediate attention or action, such as trade requests or other time sensitive matters should not be sent to SYM via email. Internet communications cannot be guaranteed to be secure or error-free as information may arrive later than intended, be intercepted, be corrupted, or contain viruses. This material is not an offer or solicitation to buy or sell any product. The opinions expressed herein are those of SYM and are subject to change without notice. To the extent that performance information is contained in this email, past performance is not indicative of future results. SYM is an independent registered investment adviser. More information about SYM including our investment strategies, fees and objectives can be found in our Form ADV Part 2, which is available upon request.