12/26/2024
After Christmas grind always seems a bit more difficult. I blame the extra food!
Today, I am tackling the succession planning for a 50/50 partnership LLC.
The partners are great friends and former coworkers.
But they hadn't had the discussion of: 'If I get hit by a bus tomorrow, how do we buy out the other person? Can my wife or child step into my shoes?'
The 'bus' discussion may seem absurd, but relationships can sour, and a business divorce may need to happen.
If you want to buy each other out, what amount is the value? And how should it be paid?
No person is fully 'replaceable', and that becomes more then evident when a partnership relies on two people to be profitable.
If your operating agreement doesn't mention "buy out", "in the event of death or disability", then the entire business may be dissolved by the court.
Give me a call to discuss and memorialize your understanding, before the worst comes to play.