Business succession involves several potential scenarios. Business succession can involve the purchase, by one partner, from another partner, a partnership interest. Likewise, membership interests in Limited Liability Companies and stock in Corporations may be sold. At the time of formation of the business, it is appropriate to determine the manner by which any business succession, including the sale of property, will take place.
Olson & Olson, PLC is experienced in drafting, at the time of business formation, buy sell agreements, and other restrictions, that guarantee family businesses remain family affairs. Further, the manner by which a person’s interest in a business, can be outlined, in the right of first refusal document. In addition, provision can be made, through life insurance trust, for the mandatory purchase of a partner or limited liability members interest, in a family business, buy and buy sell agreement. Prior planning, with regards to the business, at the time of formation, can provide assurance that the business proceeds on, even after a significant partner, or member, leaves voluntarily, or the business suffers an unexpected death.