In any organization where there is more than one owner, the drafting of a buy-sell agreement is of paramount importance. Even the strongest business relationships among partners can be tested by retirement, transition or some other form of transaction.
A buy-sell agreement sets the parameters for any potential transaction which may take place. It also provides valuable guidance for those inevitable real life situations. It is absolutely necessary in order to avoid potential litigation upon the departure of an owner, as is often the case the leaving owner believes that his shares are worth more than the remaining owners believe they are worth.
With that in mind, we’ll review a few items that we routinely encounter from a valuation standpoint. Read more