Review and refine your buy-sell agreement
For many business owners, their business is their most important asset. That’s why a buy-sell agreement can be vital. It’s a critical arrangement that helps to protect the owner, shareholders, and the business itself. A buy-sell agreement helps to ensure the continuity of the business by documenting important issues and concerns in advance so that if an owner dies or becomes disabled — or leaves the business for whatever reason — the business can continue to run smoothly and have the potential to grow.
Without a buy-sell agreement in place, there may not be a documented plan for the continuation of the business upon an owner’s death or disability. This can have serious consequences:
• To the business — since loss of revenue, lack of continuity, loss of skills, and credit risk can result;
• To the surviving owners — disputes with the deceased owner’s family, having an “unwanted” new partner, and the inability to move on with the business without distractions are all a risk; and
• To the deceased owner’s family — since preserving the fair value of the business for the family’s needs, replacing the lost income, and meeting estate liabilities may all be impossible.
This is why many small business owners already have buy-sell agreements. However, my experience has shown that many of these agreements may not be suited to a business owners’ particular needs and may not be periodically reviewed. Neglecting to periodically review and update a buy-sell agreement can have serious consequences. Out of date agreements may not provide protection in the way they were originally intended.
This is where the business planning services from Guardian’s Business Resource Center (BRC) can help. Working with the business owners’ team of legal and tax professionals,1 the BRC provides a review of their existing buy-sell agreement to make sure it’s up to dat. The BRC will then make recommendations based on the current business needs and situation — all complimentary to the business owner. The Buy-Sell Review Program will also generate a snapshot view of the business’s current value. The result is a comprehensive, customized report that clients can review with their legal and tax advisors and assess any recommendations based on current needs and long-term objectives. And, unlike some other programs, this report is fully customized to the client’s unique situation — not just a standard template.
For many business owners, their business is their most important asset. That’s why a buy-sell agreement can be vital. It’s a critical arrangement that helps to protect the owner, shareholders, and the business itself. A buy-sell agreement helps to ensure the continuity of the business by documenting important issues and concerns in advance so that if an owner dies or becomes disabled — or leaves the business for whatever reason — the business can continue to run smoothly and have the potential to grow.
Without a buy-sell agreement in place, there may not be a documented plan for the continuation of the business upon an owner’s death or disability. This can have serious consequences:
• To the business — since loss of revenue, lack of continuity, loss of skills, and credit risk can result;
• To the surviving owners — disputes with the deceased owner’s family, having an “unwanted” new partner, and the inability to move on with the business without distractions are all a risk; and
• To the deceased owner’s family — since preserving the fair value of the business for the family’s needs, replacing the lost income, and meeting estate liabilities may all be impossible.
This is why many small business owners already have buy-sell agreements. However, my experience has shown that many of these agreements may not be suited to a business owners’ particular needs and may not be periodically reviewed. Neglecting to periodically review and update a buy-sell agreement can have serious consequences. Out of date agreements may not provide protection in the way they were originally intended.
This is where the business planning services from Guardian’s Business Resource Center (BRC) can help. Working with the business owners’ team of legal and tax professionals,1 the BRC provides a review of their existing buy-sell agreement to make sure it’s up to dat. The BRC will then make recommendations based on the current business needs and situation — all complimentary to the business owner. The Buy-Sell Review Program will also generate a snapshot view of the business’s current value. The result is a comprehensive, customized report that clients can review with their legal and tax advisors and assess any recommendations based on current needs and long-term objectives. And, unlike some other programs, this report is fully customized to the client’s unique situation — not just a standard template.
Contact me today to learn how the Buy-Sell Review Program can help you better protect your business — and your loved ones — for years to come.
Pub12361WC (10/24)
1 Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation.
