Forming your business with a partnership allows you to combine talent, resources and experience to achieve greater success. But partnerships may also leave your business vulnerable if a partner becomes disabled or suddenly dies. The loss of intellect, insight and resource is only part of problem. There are many complicated legal questions of ownership and responsibility that should be settled before such circumstances arise.
A Buy/Sell Agreement can anticipate and address those problems before they occur. With a Buy/Sell Agreement, you can be assured that even in the event of a tragedy, your business can continue with as little disruption as possible. A properly structured Buy/Sell Agreement should provide the following:
- Readiness to deal with the premature death or disability of a business partner
- Protect the ownership interest of the remaining partners in the event of death/disability of a business partner
- Maintain legal and financial continuity of the business
- Minimize or eliminate disputes between remaining co-owners and families of the deceased/disabled business partner
- Protect business assets and liquidity by providing financial (and tax) planning for each of the different triggers addressed in the agreement
- Provides life insurance proceeds to compensate for the loss of a business partner
- Provides disability income to the business for existing overhead expenses while a business partner is disabled
Insight Insurance assists our clients with the valuation, succession planning, and securing the necessary life and disability policies to support the final Buy/Sell Agreement. Contact us today to find out more.
