Larry Page and Sergey Brin were PhD students at Stanford when they developed the Google search engine.  The search engine originally ran as part of the Stanford University website.  As the use of the search engine grew, Google outgrew Stanford’s servers.  With a $100,000 start-up investment and using a friend’s garage as an office, Google was incorporated as a company in 1998.  Today, some estimate Google’s value to be as much as $100 billion.  During Google’s infancy, did the two founders have a plan in place if one of them was unable to continue as a partner?  Have you ever considered what would happen to your business, and your family’s financial well-being, if you or your business partner were to pass away, become disabled, or retire?

If you have business partners, a Buy-Sell agreement is an essential document that can be utilized to ensure the continuity of your business. A Buy-Sell Agreement is an agreement between business partners that manages what happens if a partner passes away or leaves the business. A Buy-Sell Agreement establishes the rules on a partner selling their share of the business. A properly written and executed Buy-Sell Agreement protects you, as a partner, from claims on your business. There are a multitude of scenarios that you may not foresee with any potential business partner. What if a business partner declares bankruptcy and the court goes after the business during the bankruptcy proceedings? What if a business partner divorces and their spouse goes after the business during the divorce proceedings? A Buy-Sell Agreement can be your saving grace and a simple fix to protect your business.

For additional reading:

Navigating Business Acquisitions

The Spirit of Entrepreneurship

 

 

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