Buy and Sell Agreements Lawyer in Auckland – Key For Business Owners
People start businesses, grow them, go through struggles, and then poof! It can all fall apart. Tow or more partners who were happy to work together have a major disagreement and one wants to leave. What happens to their shares? What about a divorce, or even a death? Again, who will take owner ship of the shareholding? All of these issues and more can be addressed by engaging a buy and sell agreements lawyer in Auckland. They will prepare a document that lays out the potential problems, and how to manage them successfully to protect the individual parties, and the business.
Why Business Owners Need a Buy and Sell Agreements Lawyer in Auckland
- Tailored Solutions for Complex Business Structures
No two businesses are the same. Auckland has a diverse array of businesses, from tech startups to family-owned ventures, to partnerships of two or three owners. A buy and sell agreements lawyer in Auckland can draft, or review agreements written for your specific business taking into account the people, shareholdings, whether family trusts are involved, and more.
- Succession Planning
A sudden succession event can certainly cause shock but could even close a business. A well-written buy and sell agreement will give a clear path for all stakeholders to prevent disputes and protect the relationships between business partners family members. Misinterpretation or ambiguity are expensive.
- Valuation Method
Without a clear business valuation methodology disagreements can rapidly escalate into expensive court appearances and litigation. It is a wise to have a clear valuation process set out from an early stage.
- Tax Considerations and Compliance
The transfer of any part of a business ownership will have tax implications. These might be for the company or for any individuals or trusts involved. Any misunderstanding can become time-consuming and expensive issue to resolve. A good buy and sell agreement lawyer will work with the accountants to structure agreements that minimise tax liabilities, but that comply with IRD requirements.
- Mitigating Risks in Triggering Events
A triggering event can range from voluntary exits, death, permanent disability, bankruptcy, or divorce. Each of these has its own legal risks. A lawyer will prepare an agreement that anticipates and addresses these situations. The aim is to safeguard the business from a forced sale, a hostile takeover, or an unwanted new director.
- Facilitating Smooth Transitions
A trigger event is likely to be accompanied by high emotions. A wide-ranging and legally sound agreement will remove the emotions from the situation and enable smooth transitions to whatever is laid out in the document. This reduces the effect on the business including staff, customers, and the business’s reputation. Maintaining business continuity is critical.
- Enforceability and Dispute Resolution
An ambiguous agreement will be difficult to enforce. That will mean rancour and cost. Your lawyer will write an agreement that ought to hold up in court, if necessary. It is also a good idea to explicitly state the dispute resolution methods and when they will be required.
- Protection Against Unwanted Third Parties
The shares of a departing or deceased owner could end up in the hands of someone incompatible with the business’s values or strategy. An experienced lawyer will embed pre-emptive rights, first refusal clauses, and restrictions on share transfers, ensuring that only approved people or entities acquire an interest in the business.
McVeagh Fleming is a law firm with offices in the CBD, Albany, and Manukau City with buy and sell agreement lawyers in Auckland. They can advise the business owners on the best steps and draft a buy and sell agreement that meets the needs of your business owners, and the company. Click the link to discover more.