We are no longer accepting new clients.

Bryan E. Kuhn
Counselor at Law, P.C.
Business & Employment Law Attorney

The basics of buy-sell agreements, Part I: What they are

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 business can easily run into trouble when a co-owner dies, becomes disabled or even goes through a bitter divorce. In order to protect the business against the uncertain fortunes of each co-owner, a buy-sell agreement may be necessary.

So what are buy-sell agreements? In short, they are a pre-planned strategy for transferring ownership of a business when one or more co-owners are no longer able to maintain a stake in the business. They reduce disruptions that the business may experience as a result of a key partner’s exit.

The benefits and protections offered by buy-sell agreements are numerous. They include:

  • A way to ensure that the company remains owned only by those who helped build it
  • A way to ensure that the heirs of a deceased co-owner are compensated fairly for their interest in the business
  • A way to avoid acquiring business partners (usually family members) who don’t understand the business or care about its success
  • A way to avoid or reduce conflict between remaining business partners
  • Protection against the financial consequences associated with uncertainty after the departure of a key owner

In many cases, buy-sell agreements have specified “triggering” events, including death and divorce. Please check back next week as we discuss common triggering events you may want to include in your agreement.

Column Image

“I used the Bryan E. Kuhn, Counselor at Law, P.C. team to help me with a case. They were always professional, upfront, and positive providing guidance while keeping me informed.”
– L.H.

“Everyone at the firm was professional, responsive and courteous. I would definitely recommend this firm if you are in need of superior legal assistance.”
– J.S.

“Bryan and his law firm operate with great professionalism and personal touch. I appreciated the way he and his team offered transparent communication.”
– N.S.

“The team was very professional in helping me to get through an uncomfortable ADA situation at my workplace. This was a very good legal experience. I would recommend Bryan E. Kuhn & team to anyone who needs work related legal help.”
– D.L.

“Bryan, Katie, and all the staff in this office are super fast to respond, expert in their fields, and always helpful. We have been extremely pleased with their services for our small business.”
– T.Z.

Column Image


Bg Subscribe
Contact Our Firm

Office Location

Bryan E. Kuhn, Counselor at Law, P.C.
1660 Lincoln Street Suite 2330
Denver, CO 80264

Local: 303-424-4286
Toll Free: 866-693-5541
Fax: 303-425-4013
Denver Law Office Map
FindLaw Network
Click for the BBB Business Review of this Attorneys & Lawyers - Employment Litigation in Denver CO