Why Buy-Sell Agreements Are Too Important To Risk Being Unrepresented
Owning a business is just as complicated as running one successfully, and the legal nuances are even more involved. As your business model evolves so will your leadership needs — that’s why it’s critical to ensure that a transfer of power goes smoothly. Buy-sell agreements are the cornerstones of corporate growth, and drafting them demands proven legal experience.
At Schlueter Ecklund & Davitt, we firmly believe in the power of helping businesses in Rockford, Illinois, prepare for successful futures. For more than 40 years, we’ve served our community with trustworthy experience. Today, we’re proud to have made a difference in how companies fulfill their missions and create positive change.
Why Are Buy-Sell Agreements Important?
Buy-sell contracts, also known as buyout agreements, stipulate what should happen in the inevitable event that leadership roles change. You and your partners can create a contract to maintain your company’s continuity through likely occurrences such as an owner deciding to move on, dying, becoming disabled or going through a divorce where their spouse gets awarded a portion of their stake. These agreements help prepare for these and other possibilities, such as bankruptcy, by outlining:
- What might prompt a buyout
- How the value of ownership will be calculated
- Whether a partner who wants to leave is eligible to be bought out and who’s qualified to buy them out
Although some buyout agreements are relatively straightforward, others reflect the complex nature of existing ownership structures and corporate goals. Working with an attorney can help companies decide how best to safeguard the enterprises that they sink their time, sweat and money into building. We’ve spent decades providing intelligent business advisement to clients from all walks of life, and we’re confident we can help you pick the right path.
Maintain Control Of Your Passion
At some point, we all have to let go of the material things that we’ve worked for in life, but advance legal planning makes it easier to give them a guiding push in the right direction. Buy-sell agreements are vital because they minimize transitional disturbances and help Illinois business leaders ensure that their companies survive even if their partnerships don’t.
Talking to a lawyer at Schlueter Ecklund & Davitt could supply you with new insight into the challenges that your enterprise may face in the days and years to come. Contact us online or call 815-516-8264 or 800-207-5133 to discuss buyout agreement options and legal continuity planning.
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