We met with a client two weeks ago who, late last year, suddenly lost his business partner. It was a sad and unfortunate situation. To make matters more complicated their Shareholders Agreement wasn’t signed.
The verbal agreement was long-established and the paperwork had been prepared but they never actually got around to signing it. Now the remaining Director is negotiating with the Estate on buying out the other half of the practice. It’s a very stressful and upsetting situation.
Now, while the remaining Director might have had a handshake agreement with his partner, this doesn’t cut the mustard when dealing with the estate.
Startlingly, we find that two out of every three firms do not have an updated, signed Agreement.
When we prepare our comprehensive Value & Attractiveness reports, whether or not you have signed an agreement is one of the first questions we ask.
Do you have an up-to-date Shareholders or Partnership Agreement? If not, we recommend you attend to this as a priority.
We can assist you to review and update your Partnership Agreement, look at Succession Planning or your Exit Strategy.
Talk to us today about your future plans.