Although no one wants to think about it in the early stages of starting a business, the end of a business’s life cycle is inevitable. Every business changes hands at some point, whether through dissolution, the death of one of the partners or a partner deciding to discontinue involvement in the venture. It happens to every business at some point, so it only makes sense to handle the buy/sell agreement details right from the start, to minimize confusion, costly delay and animosity down the road.
Contact us as soon as you can, before your operating agreement goes into effect, if possible. It is important to plan your buy/sell agreements on the front end to minimize the chance of unwanted delay and cost when the business ownership changes hands in the future.
As Indianapolis buy/sell agreement attorneys with more than 30 years of experience, we can help you negotiate, draft and review a buy/sell agreement for your business. We focus a large percentage of our practice on litigation. We can represent your interests aggressively in the event that disputes arise in a buy/sell agreement context.
The Importance of Planning Ahead
In the beginning of a business, the partners are not thinking about the business’s possible ending, and they fail to recognize in advance some of the common reasons why businesses change hands. We can help you prepare a buy/sell agreement that prepares you and your partners for future events that include:
- One or more partners want to get out of the business: Retirement, interest in other ventures, bankruptcy and many other reasons can cause a partner to want to back out of his or her partnership in a business.
- One or more partners want to buy the others out: Sometimes a partner will want a greater share in the overall interests in the business and will offer to buy the other partners out.
- Divorce: Depending on the alimony, child support and distribution of assets, a divorce can force a business partner into liquidating his or her shares.
- Business succession: Often business founders want to leave their interests and leadership roles to their children in wills and trusts as part of their estate plans.
- Shareholder disputes: Disputes in the course of business can sever business relationships and even lead to litigation, making it impossible for partners to continue working together.