Buy and Sell Agreements Lawyer in Phoenix Supporting Clients Through a Change in Ownership
When it comes to making big decisions in life, most people feel a lot of pressure. This is especially true when it comes to deciding on making a business change or any other major asset decision. You want to make sure that everything goes as smoothly as possible and that you’re not taken advantage of in any way. That’s where a good business law lawyer can come in handy.
If you are looking for assistance with a buy-sell agreement, then Resolvere Law PLLC based out of Phoenix is right for you. We have years of experience helping clients through all sorts of transactions and know how to get the job done right. No matter what kind of agreement you’re looking to make, we can help.
We understand that this is a stressful time, and we’ll do everything we can to make the process easier for you. We’ll work with you every step of the way, answering your questions and addressing your concerns. Our law firm will always be available to answer any questions that you may have after a change happens between co-owners. To speak with our knowledgeable business attorney, call (480) 568-1327.
What are Buy-Sell Agreements?
A buy-sell agreement, also sometimes called a buyout agreement, is a legally binding contract between business partners that stipulates what will happen if one of the partners dies, becomes disabled, retires, or otherwise wants or needs to leave the business. In short, a buy-sell agreement protects the ongoing operation and future of the business by setting forth how ownership interests will be transferred in the event of certain triggering events.
This is important to the business because it allows the partners to have certainty and peace of mind that their interests in the business will be taken care of according to their wishes and not be subject to the whims of the marketplace or the other partners.
There are two main types of buy-sell agreements:
This type of agreement is between the business entity and the owners, and it dictates that upon the occurrence of a triggering event, the business will purchase the departing owner’s interest in the company. This is often done through a life insurance policy, with the business as the beneficiary.
This type of agreement is between the individual owners, and it stipulates that upon the occurrence of a triggering event, the remaining owners will purchase the departing owner’s interest in the company.
Resolvere Law PLLC can help you decide which type of buy-sell agreement is best for your business and draft and negotiate the agreement itself. We will also work with you to periodically review and update the agreement as needed to ensure that it continues to meet the needs of your business.
Why Do I Need a Buy-Sell Agreement?
There are several reasons why you might want to consider having a buy-sell agreement in place for your business. Perhaps most importantly, a buy-sell agreement can help to ensure that your business will continue to run smoothly in the event of death, disability, or retirement.
If you are a sole proprietor, a buy-sell agreement can provide for the continuation of your business in the event of your death or incapacity. Suppose you are a partner in a business. In that case, a buy-sell agreement can help resolve any disagreements between the partners about what should happen to the business if one of them dies, becomes disabled, or decides to retire.
A buy-sell agreement can also help protect your business’s value by establishing a fair price for shares of the business if one of the owners wants to sell his or her interest. This can be especially important in family-owned businesses, where there may be disagreements about the value of the business among the different family members.
Working with a business attorney to create a buy-sell agreement is the best way to ensure that your agreement meets your specific needs and business needs.
What Are Some Key Factors in Buy-Sell Agreements?
It is important to have a clear and legally binding contract when you are a business co-owner. This document is known as a buy-sell agreement and outlines the terms of the sale or purchase.
These agreements are particularly important in businesses where there are multiple owners. If one owner wants to sell their interest in the company, the buy-sell agreement will determine how that transaction takes place. It can also spell out what happens if an owner dies or becomes disabled and can no longer participate in running the business.
Buy-sell agreements can be complex, and it is important to have an experienced business attorney draft or review the document. Some key factors that should be included in a buy-sell agreement are:
- Triggering event – This is what will cause the sale or purchase of the business interest to take place. It could be the death of an owner, their disability, or their retirement.
- Method of valuation – This will determine how the business interest is valued. It could be based on a multiple of the company’s earnings, the value of its assets, or some other metric.
- The payment procedure – This will spell out how the sale price will be paid. It could be in a lump sum, over time, or through another arrangement.
- The buyer – This should be clearly defined, and it could be the other co-owners, a third party, or some combination thereof.
- Restrictions on transfer – There may be restrictions placed on the transfer of the business interest, such as who can buy it and under what circumstances.
How Can a Lawyer Help Me Outline a Buy-Sell Agreement?
A business lawyer can help you outline a buy-sell agreement that is legally binding and meets the needs of all parties involved. This type of agreement is often used in businesses with multiple owners, such as a partnership or LLC.
The agreement should spell out what will happen if one of the owners wants to sell their interest in the business or if the business is sold. It should also address what happens if an owner dies or becomes incapacitated. Having a well-drafted buy-sell agreement in place can help avoid conflict among owners and protect the value of the business. If you are considering putting such an agreement in place, contact our business lawyer at Resolvere Law PLLC today to get started.
Why Should I Hire an Attorney at Resolvere Law PLLC?
If you are considering putting a buy-sell agreement in place for your business, it is important to have a professional lawyer for business law cases in Phoenix to help you with the process. At Resolvere Law PLLC, our attorney has the ability and can assist in drafting and reviewing these types of agreements. We can help ensure that the document meets your specific needs and the needs of your business.
Protecting your business is important, and a buy-sell agreement is one way to do that. Let us help you put such an agreement in place. Contact us today at (480) 568-1327 to schedule a consultation with our business lawyer. We serve clients in Pheonix, Arizona, and throughout the state.