Why Companies with Multiple Shareholders Need Buy-Sell Agreements

hosted by: David Mariano, Director and head

of the firm’s Buy-Side advisory practice

Why Companies with Multiple Shareholders Need Buy-Sell Agreements

Having multiple shareholders can bring a lot of benefits to a business, but it also means you’ll need a solid buy-sell agreement in place so you can avoid a messy situation in the future.

This week, Rand Curtiss, a Director at Western Reserve Valuation Services, returns to the studio to talk through the reasons for creating a buy-sell agreement between owners of a business.

Key questions in this episode:

* What is a buy-sell agreement and why is it necessary?

* How can buy-sell agreements help resolve disputes between owners of a single business?

* Is it possible to have different valuations for different contingencies?

* Are there fixed rules to apply in an agreement?

* Is there anything unique about an agreement when one of the parties is a non-controlling shareholder?

Key points in this episode:

* The main trigger events that would put an agreement into action.

* How often businesses should review their buy-sell agreement.

* Why business owners resist drafting buy-sell agreements.

* The three main considerations when making an agreement between business owners (at 10:10).

* Why it’s important to think through the specifics of an agreement.

* The cost of not having a buy-sell agreement (at 18:36).

Resources mentioned in this podcast

* Click here for access to training and templates

* Western Reserve Valuation Services

* Rand Curtiss’ monthly newsletter, “For What It’s Worth”

Listen to Fully Invested below: