A plan for handover of your business can pay for itself many times over
When entrepreneurs are building their businesses, they do not usually think about their end game. Especially at the beginning, you’re usually in a good place with your business partner. Nevertheless, over time disputes and disagreements can happen, and that’s when an agreement for the planned transfer of ownership for a business is necessary. While you may not want to focus on how it will end at the beginning, if you are an owner of a small to medium business, then preparing for the worst is in your best interest. And, having an agreement in place beforehand, will help protect you and your investment.
- An agreement allows the business to continue to be successful, and for as seamless a transition as possible.
- A well-drafted agreement will cover what will happen after events like death, disability, divorce and retirement, and a poorly drafted one can be worse than not having one at all.
- Buy-sell agreements are crucial for any privately owned business with more than one owner or shareholder.
“Having a buy-sell agreement becomes even more critical as the value of the business, and the wealth of the owners, increases.”