February 18, 2014
As published in SavannahCEO
HunterMaclean partner Daniel Crook, Tony Martin of Martin Financial Services, Daniel Rowe of TJS Deemer Dana, and Brad Whitfield of Coastal Consulting Management Group recently presented information to local Savannah business leaders in a seminar on buy-sell agreements. This presentation was the first Pure Business Advice Series event for 2014.
The panel presented an in-depth look at buy-sell agreements, which lay out a framework of how business partners will proceed in the event that one partner exits the business. The Pure Business panelists spoke to the four fundamental aspects that should be considered when constructing a buy-sell agreement: valuation, tax, legal, and finance. The one-hour lunch-and-learn was part of an ongoing series of seminars addressing high-level topics affecting the Savannah business community.
“From a legal standpoint, buy-sell agreements are important to business owners so they can avoid litigation later,” noted Crook. “A well-structured buy-sell agreement provides the mechanism to move past whatever the buy-sell issue is, whether it is management deadlock, death, retirement, divorce or resignation of an owner.”
Seminar attendees learned how funding, legal framework, tax considerations, and the method of determining the value of the business can impact the implementation of a buy-sell agreement. The panelists stressed the importance of making sure an agreement is in place, and then periodically updating it to make sure it continues to accurately reflect the business.
