Sales SamplesTEST

Financial Advisor

 

YOUR COMPANY

45 Prospect Ave

Albany, NY 12206

 

Phone:  800-243-5334

Fax:        800-720-0780

 

Email: sales@ltmclientmarketing.com

Website: www.letstalkmoney.com

May/June 2019

Buy-Sell Agreements

Buy-Sell Agreements

According to the Small Business Administration, there are 30.2 million small businesses in the United States. If you are among these legions, there may come a time when you want to sell your firm — especially if nearing retirement age in the next decade.


To make the most from a potential sale, which funds a good part of many owners’ retirements, you may want to create a plan long before leaving your company. For many, this strategy will include a buy-sell agreement, which addresses the events that could trigger a sale.


Why Bother
A buy-sell agreement provides a preset way to sell your business when you move on. Without a plan, you could find it difficult to sell your business for top dollar and, in less vibrant economic times, you might even have to conduct a fire sale of sorts due to a lack of buyers.


A comprehensive agreement can help anticipate these and other challenges and may include measures to address them. The agreement, for example, should include all the events that could trigger the sale of your business. They include voluntary events such as retirement and disagreement, and involuntary events like death and disability.


Include Safeguards
You may want to include other language to protect your rights and those of any partners. Provisions to address include the method used to value the business, who would conduct the valuation and guarantees that give partners or other stakeholders first rights to purchase the business or a share of it from the departing owner.


Funding Methods
Importantly, you also may want to pre-fund a future sale. Your company might consider life insurance benefits to fund business succession in the event of an owner’s death. Putting aside money and investing periodically toward this end are two other ways to prepare for a future sale. Using company profits after-the-fact could be precarious because it could make needed capital less available and may put the previous owner investment in the company at risk.


Consult with your legal, tax and financial professionals to develop a buy-sell solution that is right for you and your business.


SUBSCRIBE

Enter your Name and Email address to get
the newsletter delivered to your inbox.

Please include name of person that directed you to my online newsletter so I can thank them personally.


CONTACT US

Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.

YOUR COMPANY and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Marketing Specialists LLC, an unrelated third party. Articles are not written or produced by the named representative.

The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.