San Diego Business Ownership Purchase and Sale Contract Attorneys
The “buy/sell agreement” is one of the most important contracts for any San Diego business, LLC, corporation or medical practice. The buy/sell agreement establishes, in advance, all of the foreseeable events that might affect the ownership interests of the business, and what will happen if and when that “trigger” occurs. Many business people have not considered the impact that the death of one of the owners would have on the life of the company itself. What happens to the ownership interest of a business when one of the principals goes through a divorce, or becomes incapacitated?
Business partners enter into a business with the best of intentions. One of the most common issues that arises down the road is that one of the partners isn’t quite pulling their own weight, or the company has grown past the capacity and skill set of that individual. What happens in that case? How does the business or the remaining owners acquire that ownership share to protect the management and prosperity of the company?
These questions are best answered at the outset of a business or while a business is operating profitably, when all parties are working together in a positive and productive manner. These questions are answered by a contract called the “buy/sell agreement”.
If your company doesn’t have a buy / sell agreement in place we invite you to contact the experienced San Diego business contract attorneys at the Watkins Firm for a free consultation at 858-535-1511. We will discuss the unique structure of your business and the ownership interests within it. We will help to carefully craft a buy/sell agreement that will foster continued growth and prosperity, while providing for the natural events that can occur at any time along the way.
Once an Event has Happened the Costs to a Business are Immediately Exponentially Higher
We’ve seen it hundreds of times: a business is thriving until an unexpected accident, the death of a shareholder or member of an LLC or health incident incapacitates or takes the life of one of the owners. It can even be as simple as a divorce. Now the surviving spouse, ex-spouse or children of your fellow owner (or their estate) have an ownership interest in your business. The resulting legal battle will be quite expensive, consuming the attention and focus of the ownership and leadership of the business, and the resolution might be determined by a total stranger to all parties: a judge.
It’s not a question of “if”. It’s a matter of “when”. Once an event has occurred, and emotions (and external greed) are in play it can be quite challenging to reach an agreement. The buy/sell agreement eliminates all of that. It saves your company huge sums of money while protecting you and all of the owners of the business, as well as the business itself. An effective buy/sell agreement clearly defines how the business itself, or the remaining ownership interests can purchase, buy out or economically compensate the partner or his beneficiaries when a triggering event occurs. The buy/sell agreement will establish the process for “valuation” of the ownership interest, and the process for acquiring or financing the buy-out of that interest.
Contact Experienced San Diego Business Buy/Sell Agreement Lawyers
Facing these challenges in the midst of a crisis is emotionally challenging and potentially financially devastating. Developing an effective buy/sell agreement up front is exponentially less expensive, and ensures that all of the hard work, time and money you invest in your new business will be protected. It protects the relationships of your ownership team, and provides for the families and loved ones of each member. Call the Watkins Firm for a free consultation at 858-535-1511 or contact us to schedule an appointment to come into our offices. We will work together to craft a buy/sell agreement that will help your business to survive whatever may come, and thrive.