Category Archives: Business Succession

Revocable Living Trust Funding and Estate Administration – Common Problems

If you set up a Revocable Living Trust (What is a Living Trust?) for estate planning purposes, you probably did so with the belief that it would make administration of your estate easy, simple and fast.  This may be true so long as your Trust was properly funded and up to date with...
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Would You Sell Your Company for $2.3 Billion?

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....
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Virginia Buy-Sell Agreement – Valuation Methods

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...
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Virginia Buy-Sell Agreement – Cross Purchase v. Redemption

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...
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