Protect Your Business Interests with a Buy and Sell Agreement
For nearly six decades, the distinguished attorneys at Froerer & Miles have successfully represented residents and businesses in Ogden, UT, and the surrounding areas. From personal injury to commercial litigation, our team of attorneys strives to deliver excellent outcomes. We can protect your business interests by drafting or reviewing a buy and sell agreement. This type of agreement is a binding contract between business partners that is written to ensure that when major life events happen, no one is left in the dark regarding when, or at what price, they can buy or sell interest in the company.
When it comes to buy and sell agreements, you need a group of lawyers who understand the specifics, who understand compromise, and above all else, who you can trust.
The Specifics of a Buy and Sell Agreement
Buy and sell agreements detail exactly what will transpire in the event of retirement, bankruptcy, disability, divorce, death, or any other major life event. If you co-own a business, it is imperative that you have a buy and sell agreement in place to protect yourself and your business in such scenarios. The potential situations covered in a buy and sell agreement include:
You and your partner(s) may require that the remaining owners buy all shares belonging to the retiring partner. This is especially wise for owners who do not want to risk business shares winding up in the hands of someone untrustworthy.
You can draw up an agreement stating that any owner facing bankruptcy must notify their co-owners prior to filing. This provides a failsafe for the other owners who can then buy their shares.
By clearly stating what constitutes a disability, you can avoid the unsettling possibility of having an active, yet ineffective owner. Decisions will have to be made regarding how to handle their income and buyout.
You may opt to include a requirement that owners prevent spouses from retaining ownership interest in the event of a divorce.
Family businesses, specifically those in which there is an heir, may benefit from including language that reduces or eliminates the hefty estate tax.
What Happens When a Buy and Sell Agreement is not in Place?
There are numerous benefits of a buy and sell agreement. Perhaps most importantly, they help co-owners avoid litigation. When no prior arrangement is in place, a strong possibility exists that owners will one day dispute over who owns what. Fortunately, in such an event, our team can help. However, the best course of action would to be avoid litigation altogether by having us craft a fair buy and sell agreement that satisfies all parties.
Benefits of Choosing a Qualified Legal Team
Business law is anything but simple. Between rules, regulations, and litigation, the worries can add up quickly. Enlisting the services of a qualified and experienced legal team is critical not only in solving disputes should they arise, but in preventing them from occurring in the first place. When it comes to buy and sell agreements, you need a group of lawyers who understand the specifics, who understand compromise, and above all else, who you can trust.
Contact Us Today
Since our founding in 1959, Froerer & Miles has helped all types of businesses in all areas of law, including drafting and reviewing contracts. You can conveniently contact us online or call us today at (801) 621-2690 to set up a consultation and learn more.