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What Happens if an Owner of a Florida business Desires to Retire But Doesn't Have a Buy-Sell Agreement?
Serious problems can arise when a business owner approaches the age of retirement without a buy-sell agreement in place. Our Tampa business attorneys and Tampa contract lawyers indicate that part of owning a successful company involves creating a long term vision for the business that oftentimes warrants the "passing of the torch" from an aging owner to younger employees in order to maintain a smooth transition for long standing customers, employees and vendors of a business.
A business owner that is approaching the age of retirement oftentimes turns over important responsibilities to what are believed to be loyal upper-level employees. However, an aging business owner without a buy-sell agreement must remain wary that a competitor and/or his own employees don't take advantage of his/her advancing age.
For example, employees that are concerned with their long term future sometimes convince customers or clients to follow them to a new employer by convince the customer or client that the aging business owner is "past his/her prime" or "on his/her last leg."
In such a case, our Tampa business attorneys and Tampa contract lawyers indicate that a competitive business could approach a few of the believed-to-be-trusted employees, offer such employees more money, and essentially purchase a customer list or book of business by hiring the employees without paying a price for the list or book, thereby leaving the aging business owner with a worthless enterprise and little time to rebuild the client base that once made the business attractive.
Such a scenario can be avoided by approaching the employees, agreeing to the terms of a succession plan, and entering into a buy-sell agreement that addresses the right of the older business owner to retire at a future date, with the obligation of the employees to "buy out" the owner when the time for retirement arrives.
Our Tampa business attorneys and Tampa contract lawyers prepare buy-sell agreements (along with shareholder agreements, partnership agreements and operating agreements) for businesses in Tampa, Florida with its client's long term vision in mind, taking into consideration the owner's desire to provide a succession plan for the business.
If you are in need of a Tampa business attorney, Tampa contract lawyer, Tampa lease lawyer or Tampa real estate attorney to review, negotiate or prepare your buy-sell agreement or contract, or to handle your business, real estate or commercial transaction, please feel free to contact us at any time.