Buy-Sell Agreements: They may be a business partner’s best friend
Shae Armstrong | Bradley
Shae Armstrong focuses his practice in the area of project finance, including equity financings and lender and borrower representation, with an emphasis on real estate investment and development, private equity, and EB-5 related cross border financing transactions.
Re-Broadcast:February 23, 2023
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Most private businesses have bylaws, company agreements or partnership agreements that govern their operations, but these agreements are often silent, or not well thought out, regarding issues that may become critically important to business partners. Specifically, most company governance documents do not include buy-sell provisions, and as a result, there are no terms in place that control how a partner exit will take place in the event of a partner’s retirement, death, disability, divorce, employment termination or a partner’s request for voluntary sale.
To put this problem in context, Forbes reported in 2021, that there are nearly 32 million small businesses in the United States. Yet, the Small Business Association estimates that only a fraction of these closely held companies have a Buy-Sell Agreement in place among the owners. This post reviews issues related to the timing for creating Buy-Sell Agreements, as well as some of the key terms that should be included in these agreements.
Key topics to be discussed:
The time in which Partner’s should Work with Counsel to Prepare the Buy-Sell Agreement
The Advantages of a Buy-Sell Agreement
The Potential Pitfalls of a Buy-Sell Agreement?
Date / Time: February 23, 2023
2:00 pm – 3:00 pm Eastern
1:00 pm – 2:00 pm Central
12:00 pm – 1:00 pm Mountain
11:00 am – 12:00 pm Pacific
Shae Armstrong | Bradley
Shae Armstrong focuses his practice in the area of project finance, including equity financings and lender and borrower representation, with an emphasis on real estate investment and development, private equity, and EB-5 related cross border financing transactions. He has represented sponsors and real estate developers in over $2 billion in EB-5 involved financings. His practice also involves advising private companies in connection with general corporate matters (including general contracts preparation and review), securities, fund structuring, compliance policies and procedures, investor relations, hospitality and multi-family related operations guidance, and broker-dealer arrangements. Shae is also a Certified Financial Crime Specialist through the Association of Certified Financial Crime Specialists (ACFCS), and he advises his clients on matters involving anti-money laundering compliance.
Shae has advised U.S. House and Senate offices, committees of the U.S. Congress, and policy and industry trade groups on alternative and international investment and lending matters. He was a contributing author to the textbook The EB-5 Book, published by ILW, and he is a frequent lecturer on a variety of topics before bar associations and professional organizations. He has been engaged as an expert witness in litigation matters involving EB-5 Immigrant Investment financings. Further, his work has been cited in numerous publications, including The Wall Street Journal, The New York Times, The Dallas Morning News, The Guardian, The Hill, Texas Lawyer, The Washington Times, The Real Deal, EB-5 Investors’ Magazine, Bisnow Commercial Real Estate News, The Daily Business Review, Association of Certified Financial Crime Specialists, The Franklin Center for Government and Public Integrity, Fee Simple of the Virginia State Bar, the Harris County Bar Association, Roll Call, and The Center for Immigration Studies.
Leveraging his background in finance, accounting, and operations, Shae applies a business-oriented approach to his law practice that focuses on efficiently and strategically achieving his clients’ objectives.
I. The time in which Partner’s should Work with Counsel to Prepare the Buy-Sell Agreement | 2:00pm – 2:20pm
II. The Advantages of a Buy-Sell Agreement | 2:20pm – 2:40pm
III. The Potential Pitfalls of a Buy-Sell Agreement? | 2:40pm – 3:00pm