Buy-Sell Agreements Lawyers in Barrington, IL
An important part of establishing a new business is to plan for the time when the partners or founders seek to remove themselves from the organization. Whether the break-up of a business is the result of a dispute, death, disability or retirement, planning for these eventualities can ensure the survival of the business even after key players are no longer involved.
At the Barrington law firm of Kelleher & Buckley, LLC, our lawyers assist clients with all aspects of business succession planning, including the development of buy-sell agreements. Such agreements protect the other partners and stakeholders and provide interested banks with the knowledge that the business will continue. As attorneys with a focus on business law, we draw up effective buy-sell agreements designed to carry out our clients’ plans for the future of their businesses.
Issues in Buy-Sell Agreements
Developing a buy-sell agreement is similar to writing a will in that it forces business partners and stakeholders to consider their hopes and goals for the business after their deaths. When we consult with clients seeking to ensure the continuation of their businesses, we consider the following when developing buy-sell agreements:
- The circumstances that would trigger the agreement, e.g., is it the disability or death of a partner, or are there other factors?
- Mechanisms for valuing the business
- Funding a buy-sell agreement, usually accomplished by life insurance on the partners
- Determining who has an interest in the future of the business and thus who can buy out a departing partner’s share
- Understanding how events such as divorce or bankruptcy could trigger the implementation of a buy-sell agreement
- Learning the tax implications of each option
In order to be useful, a buy-sell agreement must incorporate ways to address these issues and others. Our attorneys have the business knowledge and experience to draft these agreements in light of the specific circumstances of each client.