Buy-Sell Agreements in Colorado
Assistance for Your Business from a Denver Estate Plan Lawyer
Regardless of the type of business entity you have chosen to structure your business under, it is important that you and your co-owners have a written buy-sell agreement that addresses what attorneys refer to as "the dreaded 3 Ds." Specifically, what happens in the event of the death of an owner, the permanent disability of an owner, or a disagreement that results in an owner withdrawing from the business?
The Benefits of Having a Buy-Sell Agreement
A buy-sell agreement is often referred to as a "business will." Among other things, it specifies who can purchase a departing owner's stake, what events will trigger a buyout, and the purchase price and terms of the purchase.
Additionally, a well drafted buy-sell agreement:
- Ensures a continuity of leadership and ownership while minimizing the impact on the business
- Provides fair compensation for a departing owner without imposing a financial hardship on the business
- Lightens the impact of a buy-out triggered by disability or death, by obtaining life insurance and/or disability insurance on each of the owners. Such policies are readily available.
Need Guidance with the Creation of a Buy-Sell Agreement?
A former CEO of a business with $50,000,000 in annual sales, Attorney Littlepage has the knowledge and expertise to assist you in drafting a buy-sell agreement that will ensure the viability of your business regardless of a change in the ownership structure.
He has helped thousands of people throughout Colorado from his Denver office with his more than 40 years of experience, and was recognized with a 2015 and 2016 Five Star Estate Planning Attorney℠ award. In 2014, 2013, 2012, 2011 and 2010 he received the Five Star Wealth Manager℠ award, as seen in 5280 and ColoradoBiz magazines.