As a partner in a business, the most critical, yet sometimes neglected area of importance, is ensuring your business’ continuity after your partner is no longer able to be involved. A buy-sell agreement is a must for every partnership, as it establishes the responsibilities of each respective partner, and the general rules to be followed upon the death of a partner.
As part of a buy-sell agreement engagement, Roth&Co’s Advisory Services division will assist you in making sure that the agreement is structured to meet its intended goals.
Phases
There are many financial implications to consider when structuring a buy-sell agreement. The first step to creating an effective agreement is to gain absolute clarity of your current financial picture.
During this phase, we will:
Review Company Tax Returns
Review Company Financial Statements
Review Corporate Records and Existing Agreements
Your goals provide the framework when drafting the agreement and how best to fund it. Determining those goals at the outset will help minimize any conflict, allowing for a much smoother process.
This phase includes:
Understanding the Goals of Parties Involved
Establishing the Key Terms of the Agreement
This phase entails working in close concert with your life insurance agent and legal team to finalize funding and legal considerations.
During this phase, we will:
Assist your legal team with ensuring that the agreement drafted correctly represents your wishes.
Review life insurance policies
Review tax ramifications of the agreement
There are many unpredictable economic and/or legislative factors that can compromise the effectiveness of an agreement. We will review your plan at regular intervals to ensure its value and relevance.
