Entrepreneur Information: 3 Common Buy-Sell Agreement Mistakes

When you are trying to learn about entrepreneur information, there is a lot to take in. One aspect of being an entrepreneur that you will want to understand is the buy-sell agreement. Here are a few common mistakes when it comes to using a buy-sell agreement.

1. Wrong Purchase Price

Many times, partners of the business will not take enough time when deciding how much they want to sell their portion of the business for. They might agree to a price that is way too low when compared to the value of the property. If you are going to make an agreement, you need to make sure that you have properly evaluated the business and you know how much your portion is worth.

2. Funding

You may also make the mistake of not making the proper provisions for purchasing a portion of the business. If you do not have enough cash on hand and one of your partners passes away, this could cause a big problem. The family members of the deceased individual are going to need the money from this portion of the business.

3. Contract

Another common mistake is not spelling everything out clearly in the contract. You need to make sure that you work with a qualified attorney for this process so that you can avoid any contract mistakes.

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