Small and medium-sized businesses often depend on the day-to-day participation of owners, as well as trust and good faith between those owners. A buy-sell agreement is an important tool for formalizing the relationship between the owners so the business can run smoothly. At NachtLaw, P.C., we handle buy-sell agreements at every stage, negotiating and drafting new agreements, and litigating over your contract rights when there is a dispute. Contact us at our offices in Michigan to get effective representation from skilled business attorneys. We have a great deal of experience drafting buy-sell agreements for closely held businesses seeking any number of specific arrangements between the owners or partners.
Putting Partnership Deals Together
The core of a buy-sell agreement is the sale of stakes in the business to co-owners who give the other owners the right to buy their stakes back, or who agree that their stakes must be sold back to the other owners if they want to quit the business. Specific provisions can be included to address a variety of contingencies, including the right of first refusal and the obligation of first offer. In many cases, individuals run a business as partners but have never worked out a partnership agreement, and one partner owns the business’s most significant asset (for instance, an Internet domain name). These businesses will clearly benefit from working out price points and finalizing a buy-sell agreement. Contact us to learn more about how the adoption of a well-drafted buy-sell agreement can facilitate effective business planning and avoid unnecessary and costly conflict.
When An Agreement Becomes A Dispute
Unfortunately, buy-sell agreements are a common subject of litigation. In a closely held corporation, differences over the direction of the business and even personal differences between owners can lead to unanticipated conflicts over ownership and control of the business. For instance, one owner may wish to withdraw from the day-to-day affairs of the business but maintain a voting voice, and the other owners may disagree with this approach. Many buy-sell agreements do not address every possible contingency, and some are never even put in writing. Even when the obligations are clear, many times emotions have run so high that one party just will not do what the buy-sell agreement requires. If you need to exercise your rights to buy or be bought out of your closely held corporation, our lawyers can offer you skilled counsel and vigorous representation.