2021 Predictions: What is our next black swan?
As we’re approaching the end of the year, Andrew Mattner presents his predictions for 2021. What a strange old year we have seen. Never in my... Read more
Basically speaking, a Buy/Sell Agreement is a written agreement between business owners detailing how the ownership of the business will be transferred should specific events occur. Typically these trigger events involve the untimely death or invalidity of a business partner.
The agreement will detail how the business ownership will be transferred should one of the business partners be unable to fulfil their role. Often this involves the continuing business partner/s acquiring the business for a nominal sum and the departing partner (or their family) being financially compensated through an insurance policy. The agreement will also detail the valuation rationale to be used to determine the amount of consideration to be paid to the departing partner.
There are many potential consequences, some of which could prove to be devastating to a business.
These include:
The best place to start is with your financial planner who will help you work through the process with the involvement of your accountant and solicitor where required.
Please contact Altitude Advisory for more information.
"We had been grappling with some concerns regarding succession, business strategy and family dynamics in our business. We couldn't have found a better financial, management, inter-relationship coach and mentor than Andrew Mattner. Andrew gives us his genuine attention, clarity and friendship."
Gloria Rowett, Marion Holiday Park