by Kelly Deis of SoundPoint Consulting
If you are a co-owner of a business, let’s hope that you have a buy-sell agreement in place.
Why, you ask? Well, “stuff” happens. The kind of “stuff” that triggers a buy-sell agreement generally falls into five categories, otherwise known as the four D’s and an R:
Death, Disability, Divorce, Disagreement and Retirement.
And when that “stuff” happens, something else also occurs: interests of you and your partner(s) diverge. Inevitably one (or more) owners will be buying – and one will be selling shares of the company.
The problem is that as of today, you do not know which side of the fence you will be on. Wouldn’t it be nice to have a plan in place that both parties understand, deem fair and equitable, and agree on – before either becomes the buyer or the seller?
Don’t think that “stuff” will happen to you or your partner(s)? Read on and consider the risk if you happen to be wrong.