Does Your Business Have a Buy-Sell Agreement?
Many people have brilliant business ideas, but they are unsure of what agreements and documentation they should have in place to protect the owners’ rights and interests. A common misconception is that a buy-sell agreement is one needed when you are purchasing or selling a business. In reality, it is an agreement that all multi-owner companies should have.
A buy-sell agreement is also commonly called a buyout agreement, as it dictates the rights of other owners to buy out one owner’s interests under certain circumstances. For example, one owner’s interests might be vulnerable due to:
The last thing many owners want is for a spouse or someone else who has never been involved in the business to then have a stake and a vote. Instead, owners wanting to ensure they have the first option to buy out the interests can memorialize this right in their buy-sell agreement.
Buy-sell agreements can also dictate how the owners will determine the value of the shares needing to be bought, as well as how the business will cover the purchase price. Having these terms set out in advance can save much time and potential conflict once an owner must exit the company.
While the best time to draft, negotiate, and sign a buy-sell agreement is when you launch the company, it is never too late to draft one if you haven’t done so already. Always seek help from an experienced Boca Raton business attorney who can ensure you have the right agreement in place.
Contact a Boca Raton Business Lawyer for More Information
If you need assistance with any business law or contract needs, do not hesitate to reach out to Rubino Findley, PLLC. Contact us online or call 561.220.4213 and learn more about our legal services to Boca Raton companies.