If You Have a Business Partner, You Need a Buy-Sell Agreement: Don’t Get Washed Out, If You’re Left High and Dry
Just when you thought Friday night was safe, the Shark Tank entrepreneurs took a chunk of another business. What a catch! The latest deal was made with Aquaman and The Flash. As business partners, they should have a buy sell agreement, which provides airtight protection in case a business partner leaves, dies, becomes disabled or falls ill.
So wait up Super Soakers! All is not lost at sea. The Flash is not off the hook. These two guys are in the same boat with their business venture and neither one can wave farewell, so easily. Uh-uh, not if they sign a buy sell agreement. It clearly states what will happen if an owner leaves the business or is unable to carry out his or her responsibilities as a business partner.
For some added security, a business partnership should have buy sell insurance, so there’s money available to keep the business afloat, if something should suddenly happen to one of the partners.
Achieve Financial Group has decided to hop on the next seahorse down to Atlantis and give them an ocean of information that would explain the advantages of having a buy sell agreement and buy sell insurance:
The buy sell agreement protects the interests of all the owners by setting out the exact circumstances when a partner’s share will be bought out, the agreed valuation method, and the buy-out process.
By combining a buy sell agreement with buy sell insurance, the business can be funded due to a partners’ absence, which can prevent him or her from providing income for the business.
Buy-Sell Insurance can ensure funds are at the ready, when you need them most. The tailored Life Insurance plan will typically include life and total and permanent disability (TPD)
Each partner can get Total Permanent Disability Insurance (TPD). Payment can be used to fund the buy-out of a partners’ share without draining the business of capital. That way, everyone’s interests are protected.
Insurance can compensate a partner or the partner’s family for their share in the business, if they’re sick, injured or have family loss.
Okay, so you’ve been splashed with a lot of important points. Now, are you ready to get down to business? You’ve got a great valuation, and we feel you’re worth every wonderful benefit. So, there is no need to make a counter offer. Just remember you won’t be fin-ished, if your business partner can’t follow through on his or her duties. Why? Because now your business will be waterproof with a buy sell agreement! Find out more at Achieve Financial Group by calling (800) 278-8994 or email us at [email protected]algroup.com