Do you own a small business or plan to start a new business with a partner/co-owner? Have you considered what will happen in the event of your death or your business partner’s death? What if your business partner is sued for divorce or declares bankruptcy? All of these events (and more) may negatively impact the operation of your small business. It is important to plan ahead.
Category Archives: Business Succession
If you are Men’s Wearhouse, Inc, the answer is a big fat NO! Earlier this week, rival company Jos. A. Bank Clothiers, Inc. offered Men’s Wearhouse $2.3 billion to buy them out. Men’s Wearhouse quickly responded with a resounding rejection. Check out this article from Reuters.com entitled “Jos. A....Read more
One of the most important considerations in a Buy-Sell Agreement is the valuation method to determine the price at which a business owner may, or is required, to purchase the departing owner’s interest. There are three basic options for valuing your business in a Buy-Sell Agreement: (1) fixed price, (2) formula, or (3) appraisal. Fixed Price...Read more
In my previous blog post entitled Protect Your Virginia Business with a Buy-Sell Agreement, I wrote in depth about the three essential terms of a buy-sell agreement. I coined the second element as the WHO element. The WHO element asks “who has the authority to purchase the ownership interest...Read more