10605 Judicial Drive, Suite A-4 | Fairfax, Virginia 22030
Why a Buy-Sell Agreement Is Vital to a Virginia Small Business
A buy-sell agreement is a legally binding contract between the owners of a business that outlines the terms and conditions under which one owner’s interest can be bought out by other owners or sold to outside parties. This document is particularly vital for small businesses, such as partnerships or LLCs, in which the impact of an owner’s exit can be more significant.
The main value of a buy-sell agreement is that it provides a clear and structured path for an owner to exit the business, whether due to retirement, disability or voluntary departure. It also applies in case of an owner’s death. The agreement facilitates a smooth and orderly transition of ownership by reducing the chances of disagreements, disputes or lawsuits among owners or a deceased owner’s heirs. As such, it minimizes disruptions to operations and promotes continuity for employees, contractors and clients.
A buy-sell agreement can accomplish these important purposes:
Crafting a well-structured buy-sell agreement should be entrusted to a business law attorney who is experienced with the multiple considerations involved. The agreement should define the types of events that will trigger its effect. It can set the criteria for choosing a valuation expert in the event of disagreements over share values. It can also provide for taking out life insurance to give surviving owners the funding needed to pay for a deceased or disabled owner’s shares.
At Pikrallidas & Probasco in Fairfax, our seasoned attorneys provide skillful counsel to businesses throughout Virginia and Washington, D.C. For an appointment to discuss your company’s legal challenges, please call 703-267-2600 or contact us online.
10605 Judicial Drive,
Suite A-4,
Fairfax, Virginia 22030 United States of America
7290 Centreville Road,
Manassas, Virginia 20111 United States of America
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10605 Judicial Drive, Suite A-4
Fairfax, Virginia 22030
Fairfax personal injury lawyers at Pikrallidas & Probasco are located in Fairfax, VA and serve clients in and around Fairfax, McLean, Oakton, Merrifield, Vienna, Annandale, Dunn Loring, Clifton, Fairfax Station, Mount Vernon, Falls Church, Reston, Chantilly, Alexandria, Centreville, Springfield, Herndon, Gainesville, Haymarket, Front Royal, Shenandoah County, Frederick County, Clarke County, Warren County, Fairfax County, Fairfax City, Falls Church City and Manassas Park.
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