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The cost of Doing Nothing: Why No Buy-Sell Agreement Can Sink Your Business

Updated: Jun 28


What is a buy-sell agreement and why does your business, no matter how small need one?


As my business grows I'm meeting more business owners whether they are independent contractors ie Therapists, Dentists, CPA, Coaches, Insurance Agents or Business Owners who have employees they all have something in common RISK.


A buy-sell is an insurance policy that basically protects both parties interest in the event of death, if one partner wants out, has a divorce, incurs a disability, or transitions to retirement all of these are events that impact the other person ownership and added responsibility in the business.


So many owners I meet are not only unprepared for minor financial hiccups they don't even have a legal agreement in a place that speaks to how they want the succession of the business to be laid out.


Without one, everything’s up in the air. I've seen so many horror stories-You could end up in business with your partner’s spouse, kids, or someone you’ve never met. Worse, you might be forced into an expensive legal battle.


A well-crafted buy-sell agreement helps:

• Avoid conflict between partners and families

• Ensure fair business valuation and clear buyout terms

• Protect continuity of operations and ownership

• Preserve relationships—and the business you’ve worked hard to build


It’s not just for worst-case scenarios either. Even in the best situations things can get complicated fast without a written agreement.


Think of it like a prenup for your business. You hope you never need it, but if you do, you’ll be glad it’s there.


If you already have one—great. Just make sure it’s up to date. If you don’t, now is the time to get started. My company offers buy-sells through some of the most trusted life insurance company's in the US! Call us today and we can you get started.

Your business, your partners, and your family will thank you.


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Carmen Hornberger CEO

314.393.4037 cell

1877 271 9883 offices







 
 
 

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