Does your business have a valid buy-sell agreement in place?
Abstract: Owners of manufacturing and distribution companies are often so focused on the here and now that planning for future catastrophes may fall through the cracks. But operating without a valid buy-sell agreement can cause financial distress and even tear a company apart if tragedy strikes. This article outlines the details to address in a buy-sell agreement, including the types of “triggering events,” valuation parameters and buyout options. A sidebar explains how to avoid potential pitfalls when transferring family businesses to the next generation.