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CLIENT CARE BEYOND COMPARE

We work with clients around Australia with most of our client meetings conducted over the phone. We can set up teleconference calls so that the Advisers can participate in the discussion between the lawyer and the clients. More often than not, the clients meet with the Adviser in their office for those phone 'meetings'.

BUY SELL AGREEMENTS

 

Introduction

 

When people own a business a lot of their wealth can be tied up in it.

They have often worked for years to build it up and when two or more people are involved, exit scenarios can be tricky. It's not always easy to sell a share in a private business.

 

More often than not, the disposal of the business assets upon one proprietor's death or incapacity is not clearly and legally specified. The need for
appropriate legal agreements between partners may seem painfully self-evident - but some sources indicate that as many as 95% of businesses may not have the right kind of agreements in place!

 

This can lead to immense problems for the business, for the surviving business owner(s) and for the departing proprietor or their family.

 

Without a formal Buy Sell Agreement in place to dictate the terms under which business assets are handled in the event
of a death or serious incapacity, plus sufficient insurance to fund the settlement, scenarios like these are heartbreakingly common:

 

A Buy Sell Agreement - sometimes referred to as a "Business Will" - is a contract between business partners that sets out exactly what the rights and
obligations of each partner are in the event of the involuntary departure of a partner.


The agreement specifies:

"Trigger events" - those situations in which the contract is to be "triggered" (usually the death, critical illness/trauma
or total and permanent disability of a proprietor).
"Call options" - the right of one proprietor to purchase another's equity under specified circumstances.
"Put options" - the right of one proprietor to force the other(s) to purchase their equity in the business under specified circumstances.
"Agreed price" - the price at which the equity will be sold

 

For more information on our Buy Sell Agreement email us today info@irongrouplawyers.com and request a copy of our Insight.