Going into business with other people has its share of benefits, but when things go awry, which often do, will your share of the business, assets, and livelihood be protected? Your Alabama business may be profitable and successful, however if one of the business partners dies or wishes to opt out, you need to have a formal, legal agreement in place to outline the future of the business, the handling of any opportunities that come available, and set forth a roadmap of sorts to specifically outline how the business dealings will be handled under certain situations. These are just some of the reasons why you should consider a Buy-Sell Agreement to protect your Alabama business.
Advantages of a Buy-Sell Agreement
If your business does not have a Buy-Sell Agreement in place, there are many scenarios that could potentially surface, putting your business at risk, including a diminished value.
Once you know the many advantages of a Buy-Sell Agreement, it is recommended you contact your local Alabama independent insurance agent to discuss a Buy-Sell agreement that is protected by life insurance. Below are just some of the many benefits of having a Buy-Sell Agreement:
- It is a legally binding agreement that protects the financial interest and consequences of all the business owners
- Usually funded by life insurance, the Buy-Sell Agreement allows the co- owner(s) access to funding in order to purchase (for any cited reason) the available owner’s interest in the business
- The fair value of the business is established and agreed upon so it’s clearly outlined in the agreement WHO is eligible to purchase the available portion of the business and for what amount
- Acts as a roadmap to specify a preferred exit strategy and ownership succession plans, which reduces any uncertainty concerning how the business will be owned and operated, given certain situations
Unfortunately, many business owners fail to have a succession plan in place so when situations turn bad, someone dies, suffers a permanent disability, or simply wants to leave the business, chaos can ensue, leaving the business dealings up for grabs to individuals who hold no interest or desire in the future of the business. Burkett & Associates Insurance Agency understands the need to protect your livelihood and has an expert staff that is knowledgeable about Buy-Sell Agreements, funded by life insurance, and how it can benefit your Alabama business. We are here for you, as an Alabama independent insurance agency, to assist you with all of your insurance needs so call us TODAY at 256-704-7400.