On May 7th at 2pm CDT, I will be joining Jeff Lerman of Lerman Law Partners, LLP on the Zoominar, “Coronavirus Alert: Is Your Buy-Sell Agreement Defective?”. You can sign up for it here. If you are unable to attend, please still sign up and you will receive a recording and can listen at your leisure.
The sudden uncertainty of a potentially serious health challenge, which has been created by the coronavirus pandemic, makes it crucial for all investors, and their advisors, to review their buy-sell agreement to make sure it is not defective. A shocking number of investors do not even have a buy-sell agreement with their partners or, if they do, that agreement may be defective.
One of the most frequently overlooked and least understood provisions in joint venture agreements, whether those joint ventures involve LLCs or corporate entities, is the buy-sell agreement. Because it is so important, it is crucial that investors, as well as their lawyers, should understand the essential issues that should be discussed and addressed in that provision.
The session will address the following learning objectives:
- The best way to minimize the risk of future disagreements over the price of a partner’s interest when a buy-sell “triggering event” occurs, and why it works better than the other options
- Why fixed price and formula agreements are unlikely to work when triggered.
- Why many typical valuation process buy-sell agreements are unlikely to work and the problems they present for companies and owners
- The seven critical defining valuation elements to assure a reasonable valuation process when a buy-sell agreement is triggered
- Why, now more than ever, you or your clients, should consider having life insurance in connection with the buy-sell agreement
- Why, if you or your clients have life insurance associated with your agreements, you must immediately determine if they need to be amended to avoid major problems
Sign up for this complimentary Zoominar here.