Local professional offers insight on key business documents Any time ownership of a business starts or changes, there are details to be reconciled by the ownership group. Taking time to ensure details are well-documented, legally-sound and signed right can safeguard you from future difficulties. One proactive measure many business owners take is signing a buy-sell agreement. As a financial representative with Modern Woodmen of America, I help people in the East Bay area achieve their goals. Whether I’m consulting on retirement, investments or business, it’s my passion to help people in my community achieve financial success. Business owners often ask for help with legal documentation. You should consult your attorney for assistance, but a buy-sell agreement is often part of the process. Here are a few of the benefits. Clearly establish ownership structure A buy-sell agreement determines who owns what percentage of the company based on their investment. For small companies with few owners, these documents can be very simple. For larger entities, they’re more complex. Set guidelines for potential owners One of the most important benefits of a buy-sell agreement is defining who could potentially have ownership in the business. The document sets clear rules for what happens if an owner dies, divorces, is bought out, or is otherwise unwilling or unable to own their portion. Many buy-sell agreements stipulate interest can’t be sold outside the ownership group or be granted in a divorce. Additional guidelines can guard against undesirable owners. Plan for unforeseen events While a buy-sell agreement provides some guidance for succession, it’s not a replacement for a succession plan. However, the document can help govern the company if there’s an emergency or unexpected event. Simplify future legal issues A buy-sell agreement is a best practice, especially if the business experiences significant growth. Ownership changes can be complex, but a buy-sell agreement can make the process less messy.. Want to learn more about buy-sell agreements? I can provide insight tailored to your unique business needs. To get started, call me or browse my website today. * Securities and advisory services offered through MWA Financial Services, Inc., a wholly owned subsidiary of Modern Woodmen of America. Member: FINRA, SIPC.