Case Study: Crafting a Buy/Sell Agreement Ensures Company’s Survival

Client:

Foam and fabric manufacturer

Challenge:

The two partners, who are brothers, had been in business together for a long time and owned equal shares of the company; however, one handled 80% of the business and the other handled the remaining 20%. They worked with an attorney on a buy/sell agreement, but never signed because it wasn’t financially beneficial to their arrangement and would potentially put the future of the company at risk. The partners called upon Fineman West for assistance.

Strategy:

Having worked with the brothers for more than 30 years, Fineman West understood what made their company tick – how the business operated, how the partners operated – and recognized that the attorney’s “template” buy/sell agreement wasn’t advantageous if a major event such as a death occurred. We knew the right questions to ask and identified terms that worked for this particular industry and unique circumstances that could occur given the partners’ family relationship. Our team spent time with the partners, breaking down and translating the agreement conditions.

Result:

The partners now have a buy/sell agreement in place that makes economic sense and ensures the company will survive in the instance of a major event. Ready to transform your business? Contact us today at (213) 688-9898 or info@fwllp.com.