November 30th, 2016 by Keith Hock
Owning a successful business can provide a steady income, a growing net worth and security for families and future generations. Achieving these objectives can also be challenging – especially when there are multiple shareholders in a privately-held company with no market for its stock. In an effort to provide a mechanism for shareholders to sell their stock, many such companies use buy-sell agreements to govern how a shareholder can sell shares to the company or another person.
While a well written buy-sell agreement can smooth the process of transferring stock in a closely-held company, a poorly crafted buy-sell agreement can cause problems when stock transfers do not go as planned.
At a GBQ seminar held in Cincinnati last month, Kelly Noll, Senior Manager in GBQ’s Valuation and Financial Opinions practice, shared insights into the role that buy-sell agreements can play in easing or causing problems in shareholder transitions. Among the observations that Kelly shared were the following:
If you would like to learn how GBQ can assist when buy-sell agreements are being drafted, please contact Kelly Noll. If you need assistance when there is a dispute over a buy-sell agreement, please contact Keith Hock.