Complimentary Business Evaluation for Small Business Now Included in Buy-Sell Agreements

Sept. 14, 2012 - PRLog -- Buy-Sell agreements are extremely helpful for small businesses with multiple owners and are mandatory for partnerships of equal ownership interest. Sound business practice for small business owners requires both a buy-sell agreement and a living trust.

Buyout agreements protect the owners of partnerships, S-Corporations, limited liability companies (LLCs) and other closely held business entities. Properly prepared buy-sell agreements will:
•  Resolve owner conflict over control of the business
•  Plan for the retirement of owners
•  Anticipate the disability of an owner
•  Protect the surviving spouse
•  Protect the business from a divorced spouse
•  Plan for an exit with who buys out who, when, how, and how much
•  Provide wealth transfer protection to heirs and protect the surviving owner from heirs as co-owners

Properly prepared livings trusts and estate planning will:
•  Avoid probate court
•  Avoid conflict among heirs of the estate
•  Provide liquidity to pay estate taxes
•  Provide for the orderly transfer of assets from the estate to the heirs

To begin a meaningful conversation in this critical stage of estate planning the value of the business should first be quantified.  Mark W. Bidwell provides complimentary informal business valuation. Valuation methods used are: multiples of sales, multiples of book value, capitalization of earnings, and discounted cash flows

Alternatives to Buy-sell Agreements and Estate Planning
•  Litigate between owners over control of the business
•  Litigate with former spouses and children of partners on how to run the business and the payment of dividends, distributions and salaries
•  Litigate with the IRS over the value of the business for estate tax owed
•  Wipe out the estate’s liquid net worth to pay estate taxes owed on the business
•  Sell the business to pay the estate taxes
•  Go into business with a partner’s spouse or children
•  Litigate among heirs of the estate

Company Profile
Mark W. Bidwell is an attorney licensed to practice in the state of California and an Inactive Certified Public Accountant.  Areas of law practice are probate, probate litigation, trusts and estate planning. His office is located at 18831 Von Karman Avenue, Suite 270, Irvine, California 92612. Contact Mark W. Bidwell at Mark@BidwellLaw.com or 949-474-0961.