If you’re the owner of a privately held company, your business is often the largest asset on your personal balance sheet. One of the best ways to protect that investment is to have a well-written buy-sell agreement that spells out the terms and conditions under which your ownership will be transacted amongst your fellow business owners. Without a proper document, owners can be left in limbo and in a state of constant negotiation, often at a time when emotions are high.
Your agreement should be structured in a manner that reflects the intentions of the owners and contains provisions that protect them and the company. Here are three common short-comings with buy-sell agreements.