Should We Have a Business Lawyer Draft Our Buy-Sell?

Business lawyer in MassachusettsThe buy-sell agreement is one of the cornerstones of most businesses, laying out how the future will unfold in the event of “triggering” factors like death, disability, divorce, and departure from the company. Corporations that have more than one shareholder should seriously consider a buy-sell agreement, but it is not a good idea to use a generic form or to create one yourself without an attorney’s insight.

Businesses can be complex, and the different interests that shareholders bring to the table are usually what prompt a buy-sell agreement to begin with. Since one shareholder’s leaving the company for any reason can have such serious implications for everyone involved as well as the business itself, it is important that the document be accurate and reflect what the stakeholders actually believe it reflects. Small mistakes can wind up costing shareholders in big ways. For instance, what are the triggers? Who gets to buy the shares, and in what order? How is the buyout funded? Does the affected shareholder have to sell?

This is why having the document prepared or reviewed by a business lawyer in Massachusetts is so important. The document can be reviewed for alignment with local and state laws and be explored in detail to ensure that it will be valid in the future. Most importantly, the lawyer can advise you on common pitfalls and provisions that most people choose to include. Having a business lawyer in Massachusetts draft and review the document can be critical for reducing the opportunities for litigation or confusion in the future when a triggering event happens. Having a proper buy-sell agreement in place can both minimize problems and provide for a smooth transition when one party or more departs the company