Ensure A Smooth Transition With Buy And Sell Agreements
While focusing on the daily operations of managing a business, it is easy to neglect considering what happens when you or a partner is no longer part of the equation. However, a lack of preparation can cause major problems. Exit strategies and business succession are vital elements of a comprehensive plan.
Located in New York City, Codispoti & Associates, P.C., advises business owners and shareholders as they prepare for eventual transitions. Our experienced attorneys work closely with clients to draft buy-sell agreements that fairly protect both the business and the share’s value upon departure.
A Buy-Sell Agreement Should Be Comprehensive
Within a buy-sell agreement, it is advisable to address several matters, including:
- Whether the other business owners will purchase a portion or the entirety of the share, which is known as a cross-purchase agreement
- Whether the business itself will buy out a portion or the entirety of the share, which is known as a redemption or buyout agreement
- Whether an external investor may purchase the business share
- A requirement for proper valuation of the share before the sale
- How the business or owners will fund purchasing the share
- Methods to minimize tax obligations
Regardless of a business’ worth, well-prepared buy-sell agreements can reduce potential conflicts and keep the business running smoothly when an owner or partner leaves. Collaborating with a skilled business law attorney can ensure that the plan will be effective when you need it most.
We dive deep into the particulars of our clients’ businesses to create personalized, strategic agreements. With more than 30 years of experience, Bruno Codispoti is thorough. We pay attention to both the logistical and financial implications of a buyback.
Plan A Long-term Business Strategy
Codispoti & Associates, P.C., supports clients ranging from family-owned businesses to large corporations. We strive to achieve your business goals, offering detail-oriented guidance in English and Italian. Email the firm or call 212-791-9453 for a direct consultation.