Rarely do I give 5 stars but Attorney Kevin Strait answered all my questions about starting my business and helped me analyze my start-up costs. He’s incredibly knowledgeable and made my life so much easier.
Seriously impressed.
BUSINESS LAW
WRITE TO US
Buy/Sell Agreements
If you own a business, you need to have a comprehensive buy and sell agreement in place. A buy and sell agreement details what happens if one of the company’s partners passes away or leaves the business.
Working with a skilled business attorney to craft a thorough, legally binding buy and sell agreement is essential to facilitating a smooth transition of power if a shift occurs in the ownership of your business.
What is a Buy/Sell Agreement?
A buy and sell agreement is a legal contract detailing what is to occur when a business owner dies or leaves the company. The agreement (sometimes called a buyout agreement, a buy-sell agreement, or a business will) outlines how the partner’s share or shares are reassigned in the event of their retirement, death, or departure from their ownership position.
What Does a Buy/Sell Agreement Do?
Typically, a buy/sell agreement dictates that the business share is to be sold at a predetermined rate to the company or its remaining shareholders. If the owner passes away, leaving their share to their estate, a buy/sell agreement can dictate that the estate must sell the share back to the company.
A buy/sell agreement prevents anyone from unfairly profiting from the departure of an owner and ensures that the business is not sold to outside investors or liquidated by one party.
These agreements also stipulate how to value the owner’s share of the business. The contract may include a formula for calculating how much the share or entire business is worth, mitigating potential disputes among remaining members.
Why is a Buy/Sell Agreement Necessary?
A buy/sell agreement is necessary for most businesses because it mitigates potential disagreements and legal battles regarding the former owner’s share of the company. A well-structured agreement also:
- Keeps the business running, creating job stability for owners and employees
- Prevents unnecessary and costly lawsuits or business mediation sessions
- Ensures the surviving beneficiaries are compensated for the owner’s share
- Sets a value for the business share, eliminating contradicting valuations
Protect Your Business’s Future with a Buy/Sell Agreement
If your business is newly formed or you don’t have a buy/sell agreement for your current company, speak with a business attorney from Anzen Legal Group today. We have extensive experience with business law and can help you craft a buy/sell agreement that protects your company and ensures a smooth transfer if something happens to you or your business partners.
The Anzen Legal Group, represents clients throughout Colorado in communities such as Fort Collins, Denver, Colorado Springs, Boulder, Aurora, Grand Junction, Centennial, Greeley, Castle Rock, Lakewood, Broomfield, Arvada, Pueblo, Parker, Longmont, Westminster, Loveland, Thornton, Commerce City and Canon City.
Representation You Can Count On
For estate planning, business formation, or assistance with your business strategy, work with Anzen Legal Group. Our team is eager to support local businesses and their families across the Centennial State.
We also represent clients in contract disputes, family law matters involving divorce, child custody, and more. Our experienced Colorado lawyers listen attentively and provide trusted counsel for any legal situation you may encounter.
Call us at (970) 893-8857 to speak with one of our attorneys and start the process of protecting your rights, assets, and future.
Testimonials
I call Kevin with Anzen Legal for all of my aviation business’s legal needs. His advice was invaluable to my business start-up process.
Attorney Kevin Strait did an amazing job to help us get out of an urgent predicament that required immediate action over a weekend in a complex matter. He was extremely responsive to our needs and his counsel was spot on and helped resolve the situation within less than 72 hours. Highly recommended!
Kevin, one of the attorneys, does a great job explaining how the law works for me and against me whenever I have a business question.
Kevin at Anzen Legal helped me avoid some legal pitfalls in my industry association meetings. He does a great job applying legal knowledge to the real world of business.
One of the attorneys, Kevin Strait, walked me through all my options for starting a non-profit. He was able to boil down the process to the essential things I needed to know.
The team at Anzen are without a doubt the best I have worked with. Not only are they competent, professional, and knowledgeable, but they are the 1% of attorneys that the 99% are giving a bad name to. Do yourself a favor, and place all your legal affairs in their capable hands. I didn’t regret it and neither will you.
I have had the privilege to work with Mr. Strait on both personal and professional levels, and I have a deep level of respect for him in both areas. Mr. Strait is a competent attorney which is further enhanced by his prior engineering and business experience. What I most deeply respect about Mr. Strait is his integrity and his care for people as individuals, and I consider him heroic in both. I continue to rely on his services, and I commend him to others as well.
