Jeff Hornstein is our Business Law Attorney. Jeff gave us a presentation on Buy/Sell agreements. Usually a Buy/Sell agreement is an agreement between partners which, in effect, put restrictions on the company’s stock so that they cannot be sold without consent. Some of the incidences in which a Buy/Sell agreement would be essential would be in the death of a partner, in the case of bankruptcy, loss of a business license. This is a prearranged agreement so that the remaining partner has the legal protection to deal with spouses, heirs or beneficiaries. One of the aspects is to determine the value of the stock. Book value is one of the methods, adjusting for the value of good will accumulated depreciation and other accounting factors which could influence the value. It is essential to get an appraisal for all owned real estate and marketable securities that the business may own.
Remember Jeff Hornstein and The Hornstein Law Office when you hear your associates mention that they are starting up, disolving or having issues with their business.