What happens to a business when the owner is suddenly incapacitated or dies? A life-altering event could mean trouble for your business, family and employees. Business partners and their family members become stretched to solve problems during a crisis and could face significant financial burdens.

FRP’s National Life Practice Manager, Samantha Wickett, shared five “D” events that can trigger the need for a Buy/Sell Agreement: Death, Disability, Disagreement, Dissolution and Divorce.

Death – This event is funded by life insurance with a clearly defined plan of action.
Disability – This event is also funded by insurance and a time frame is determined to take action.
Disagreement – When a partner no longer wants to continue with the company or wishes to retire.
Dissolution: Neither partner wants to continue the business; steps to dissolve or sell are outlined.
Divorce – If a partner gets a divorce, a financial arrangement will protect the business.

“At FRP, we work closely with legal and financial professionals to assist business owners in drafting the best Buy/Sell Agreement,” said Samantha. “This way the agreement is tailored to their specific needs and circumstances by someone who understands tax implications.”

To learn more, contact FRP’s National Life Practice for a free consultation at LifePractice@FoundationRP.com