When entrepreneurs are building their businesses, they do not usually think about their end game. Especially at the beginning, you’re usually in a good place with your business partner. Nevertheless, over time disputes and disagreements can happen, and that’s when an agreement for the planned transfer of ownership for a business is necessary. While you may not want to focus on how it will end at the beginning, if you are an owner of a small to medium business, then preparing for the worst is in your best interest. And, having an agreement in place beforehand, will help protect you and your investment.

Key Takeaways:

• An agreement allows the business to continue to be successful, and for as seamless a transition as possible.
• A well-drafted agreement will cover what will happen after events like death, disability, divorce and retirement, and a poorly drafted one can be worse than not having one at all.
• Buy-sell agreements are crucial for any privately owned business with more than one owner or shareholder.

“Having a buy-sell agreement becomes even more critical as the value of the business, and the wealth of the owners, increases.”

Read more: https://beta.theglobeandmail.com/globe-investor/a-plan-for-handover-of-your-business-can-pay-for-itself-many-times-over/article36390640/?ref=http%3A%2F%2Fwww.theglobeandmail.com