University of Wisconsin–Madison

Buy-Sell Agreements

Overview

If you are in business with other people, the reality is that at some point, you will not be. As with any personal or professional partnership, communication is key. By working together to create a buy-sell agreement – before someone leaves the business – you can create a strong foundation for your partnership and ensure that you are starting on the same page.

Already in business but haven’t looked at your agreement in a while? COVID-19 brought tremendous changes for nearly every type of business. In response to the changing business landscape, you likely reviewed your business model and made significant changes to your staffing, business processes, and more – but have you done the same for your agreement?

Whether you are starting a new business or revisiting the agreement you already have in place, there is no time like the present to ensure that it still reflects your intent.

Who should attend:
  • New business partners who want to learn more about creating a buy/sell agreement and what your agreement should include
  • Existing businesses owners who are considering bringing in a new partner
  • Business owners seeking options for relieving the pressure on a business that is too dependent on the owner

Class Description

Buy-sell agreements are drafted by attorneys who incorporate important legal provisions.  Yet without your guidance, these agreements make assumptions about the terms of the valuation process.

  • How will the business be valued?
  • How much does each partner receive?
  • Do the circumstances – death, disability, quitting the business, retiring, termination – impact the answers to these questions?

By considering all of these areas before a a triggering event occurs, you can ensure that partnership transitions remain as smooth as possible – and it is much easier to make these determinations before you know which partner will “pull the trigger.”

In this session, we will cover why phrases like “Fair Market Value” and “Book Value” are not sufficient direction to a business appraiser, and why formulas don’t work. We will also share a matrix developed by Capital Valuation Group for determining the intent of the owners under all triggering events. By documenting your intent when you aren’t in crisis allows you and your business partner(s) to clarify your intent and avoid frustration, arguments, and potential litigation.

Registration

Location: Online

Class Date & Time:  March 9, 2022 from 9 am-11 am

Fees: $99

Register Online Here or call 608-262-3909 to register. BONUS: Place 2 or more spring or summer paid SBDC courses in your cart, and use discount code SBDC10 for 10% off. Classes must be purchased in the same transaction.

Registration policy: Payment will be required at time of registration. You must have either a credit card or valid UW-Madison funding string to be able to register.

Cancellation policy: If you cancel before the program begins, there is a $25 cancellation fee. If you cancel after the program begins you will be charged for the full program fee. To cancel, call registration at 608-262-3909.

Disability Statement: Reasonable accommodations for persons with disabilities will be made if requested at least two weeks in advance. Contact the UW-Madison SBDC office at sbdc@bus.wisc.edu to request accommodations.

Instructor

Jane TerebaJane Tereba, CPA

Ms. Tereba is a Shareholder with Capital Valuation Group and provides business and intangible asset valuations and consulting services.  Prior to joining the firm, her demonstrated record of achievement includes over 15 years of experience in public accounting.