In today's post, we are continuing a discussion we started last week about buy-sell agreements. If you co-own a business with one or more people, the company should be able to survive and experience minimal disruption if one of the partners can no longer retain a stake in the business. Buy-sell agreements are written with those goals in mind.
There are advantages to starting a business with one or more other people, as compared to going it alone. For starters, sharing the work and financial risk is easier with co-owners. Unfortunately, however, there are also some risks involved. This includes uncertainty about what happens to the business when a co-owner experiences a major change in life circumstances and leaves the business.
A couple weeks ago, we discussed things that business owners need to keep in mind as they prepare to sell their business. The sale of an established business is a complex process; one which can be precarious for your financial health and the long-term health of your company. Because of the risks and complexities involved, you may want to seek the help of an experienced business law attorney.