Nov 06 2024 51 mins
Buy Sell Agreements: What You Need to Know
This episode of our show is taken from actual sessions we've conducted in Exit Success Lab with business owners and the professionals who advise them. If you'd like to be a part of these sessions and increase the value of your business, apply for membership by calling: 1+786.436.1986.
In this show, we explore the essential topic of buy-sell agreements and why every business owner must have a well-structured one in place. Our discussion begins with Harry Cendrowski and John Alfonsi addressing the common scenarios where business owners either lack a buy-sell agreement or have one that fails to meet their business needs.
Harry Cendrowski and John Alfonsi are seasoned experts in business advisory, and they provide in-depth insights into the importance of buy-sell agreements in safeguarding business continuity, especially during unforeseen events like the departure of a key partner, death, or retirement. In this video, they break down the complexities and offer practical advice on how to create a robust agreement that addresses both current and future business goals.
Key Topics Covered:
What is a Buy-Sell Agreement?
A foundational document that outlines how ownership changes hands in the event of key transitions like death, disability, or retirement.
The Consequences of Not Having One:
What happens when business owners don’t have a buy-sell agreement or have one that is outdated or inadequate?
Common Mistakes in Existing Agreements:
Harry and John discuss the most frequent errors business owners make when drafting these agreements and how to avoid them.
Tailoring an Agreement to Fit Your Business:
Learn why a one-size-fits-all approach doesn’t work and how to customize a buy-sell agreement to align with your specific business structure and objectives.
Steps to Crafting an Effective Buy-Sell Agreement:
Practical advice on key provisions, funding mechanisms, and legal considerations that should be included to ensure the agreement is comprehensive and effective.
This episode is a must-listen for business owners, partners, and advisors looking to protect the future of their businesses through sound legal and financial planning.