Bel Air Firm Creates Enforceable Business Buy-Sell Agreements
Maryland attorneys safeguard partners and fellow shareholders
Questions that arise during an ownership change in a closely held business can create a serious risk for partners or other shareholders. To help safeguard against problems down the road, Stark and Keenan, P.A. helps clients establish enforceable buy-sell agreements that dictate how someone’s stake in the business should be allocated in the event that person leaves. Whether the departure is reasonably foreseeable or occurs suddenly and unexpectedly, our Bel Air firm can help ensure that clear, legal plans are in place regarding the valuation and distribution of business assets.
Harford County attorneys prepare companies for various contingencies
Representing small and large businesses in Harford County and across the greater Baltimore area for more than 30 years, our firm delivers sound counsel on buy-sell agreements that can be put into effect for situations such as:
- Death or serious illness — No one can predict when a serious illness or accident will prevent someone from exercising their ownership duties. We examine the specific responsibilities associated with your business and draft guidelines as to how incapacity will be handled. Moreover, our experienced attorneys advise on succession planning and how someone’s partial ownership should be transferred in the event of their untimely death.
- Divorce — Shares of a business acquired during the course of a marriage can qualify as an asset to be divided under Maryland’s equitable distribution standard in a divorce. As the divorce process can run for many months, or even years, key decisions might be put on hold until the situation is cleared up. We draft language that helps the operation to keep running smoothly in the event of a spousal breakup.
- Financial distress — If a partner or shareholder is facing a personal financial crisis, they might be looking to sell their stake quickly and without regard to whether the buyer is a good fit. Conflicts might also arise about how someone’s part of the business should be valued. To guard against the risk of an inappropriate “fire sale,” our firm drafts language that specifies when a part owner can make a sale and how they should be compensated.
- Disagreement among owners — Any type of business litigation can be difficult and costly, but when two or more people who controlled an enterprise together start battling, it can threaten the survival of the underlying operation. Just as a prenuptial agreement safeguards what people bring into a marriage and prevents wasteful disputes, a well-crafted buy-sell document can make a business split less painful.
Failing to execute a legal buy-sell agreement could put a major portion of your business in the hands of someone who is not qualified to handle key responsibilities or who has a vision that is incompatible with yours. By working closely with partnerships and corporations, we negotiate deals that make sense for everyone involved and can include buyout rights, valuation standards and restrictions on how shares can be sold.
Contact a strategic Maryland business lawyer to discuss a buy-sell agreement
Stark and Keenan, P.A. drafts, negotiates and enforces buy-sell agreements for business clients throughout the greater Baltimore area. For a consultation regarding your needs in this area, please call or contact us online. We are located in Bel Air and Baltimore.