Business Succession Planning Services

You and your associates have planned, worked hard, and sacrificed to make your business successful; it’s your livelihood. But, what would happen if you or one or more of the other owners of your business were to die or become incapacitated tomorrow? Your business, your family, not to mention yourself could be severely threatened legally and financially if you fail to protect yourself.

Here’s what could happen. Upon your partner’s death, his or her share of your business could be inherited by a spouse, son, a daughter, or even ex-spouse, and he or she would be your new business partner. What if they want to be bought out at an amount much higher than the true value of their share and are ready to retain an attorney to fight about it? What if their plans are very different from yours for the future of your business? You may want to grow the business while they are looking for income. Will you and your business have the cash needed, when you need it, for this or other purposes?

And what if it is you who dies or becomes incapacitated? You rely on the business to produce the income you and your family live on. With you there, your business is a valuable asset; the foundation of your family’s financial security. But what would your business be worth without you, and how can you be assured you and/or your family will get what you deserve?

Protection from many of your worst nightmares, however, can be assured with a buy-sell agreement. A buy-sell agreement is a legally binding contract between parties for selling and buying a business at a set price or a price derived from a formula that will take place at a triggering event such as the death or incapacity of a partner.

A properly structured buy-sell agreement:

– Helps establish the value of the business or individual interests
– Identifies buyer(s) who must buy
– Establishes an agreed upon procedure in case of an owner’s death or incapacity
– Requires an estate to sell to surviving owners or employees
– Provides a funding mechanism for the buy-out
– And much, much more.

Buy-sell agreements can be complex documents and it is important that they be written and funded properly in order to be effective.

Wealth Counsel

Wealth Council

Docubank

Docubank

Contact Us

Steven M. Greenwood, P.C.
2801 Townsgate Rd., Ste. 210
Westlake Village, CA 91361

805-277-5020 - Phone
805-277-5021 - Fax
info@CAestatelaw.com

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