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I am constantly surprised at how few businesses - including family owned - have a current, funded, signed shareholders' agreement. Why is that?
The lawyers who design and draft agreements know their value as do the insurance advisors who fund them. Perhaps, as a well-known line from a movie suggests, "what we have here is a failure to communicate." I find questions to be the best way to get people thinking. Here are a few on this subject that may lead to an appreciation for the value of an agreement.
We know from many years of working with businesses that a funded agreement can reduce tax, provide funds for the purchase and generally increase the likelihood of an acceptable result. Just as importantly, the agreement allows the business to continue to prosper in spite of a disruption that could have caused it to fail.