About the Course:
Buy-Sell agreements are to businesses what pre-nuptial agreements are to marriages.
Most partners typically do not want to focus on dissolving the enterprise during the formative stages. However, it is far more costly and the risks of litigation are infinitely higher if partners wait until a triggering even—such as death, incapacity of a member, loss of a professional license by a member, or a partner simply wanting to leave the business—occurs before determining how to arrive at an equitable valuation for acquiring a partner’s shares.
Another reason to consider buy-sell agreements revolves around the issue of squeezing out an unproductive partner in a manner that is legal and ethical.
The following are among the issues that are discussed during this course:
- When should buy-sell agreements be negotiated and who should be involved in such negotiations?
- What are common triggering events in buy-sell agreements?
- The differences between cross purchase agreements and redemption agreements
- Restrictions on transferability of assets (absolute prohibition, consent required, right of first refusal, right of first offer, options to purchase)
- Forced sales
- Purchase price determination
- Funding methods for buy-sell agreements (current cash flow, sinking fund, retirement plans, installment sales)
- Funding the buy-out with insurance
- Interaction with non-compete agreements
- Conflict management measures
- How to structure and price options?
As part of this course, registrants will receive a Buy-Sell Agreement Checklist prepared by the instructor which includes 122 important issues to consider when negotiating buy-sell agreements with your partners.
Course Leader: Martin H. Abo, CPA/ABV/CVA/CFF
Martin H. Abo is a Managing Member of Abo and Company, LLC – Certified Public Accountants / Litigation & Forensic Consultants – with offices in New Jersey and Pennsylvania. Clients, as well as the banking, insurance and legal community, have increasingly called upon him to provide technical assistance, arbitration or expert testimony on financial accounting matters, business valuations, structuring buy-ins and buy-outs, divorce, estate controversies, insurance claims and other forensic/investigative analysis covering a wide range of topics and industries.
Marty was elected to serve as a New Jersey delegate to the White House Conference on Small Business under two U.S. Presidents. The Small Business Administration also named Marty Accountant Advocate of the Year.
Marty is an active member and has chaired for two years the Litigation Services Committee of the New Jersey Society of CPA's and serves on the Litigation Support & Forensic Accounting Interest Group of NJSCPA. Marty holds the professional designation of Certified Valuation Analyst from the National Association of Certified Valuation Analysts.
Course Length: Approx. 1.5 hours
Need help purchasing this course? Please contact Neomi Barazani at 609-919-1895 ext. 100 or at firstname.lastname@example.org.