The Process that Creates Wealth – Implementing the Buy-Sell Agreement
If the owner of a business dies or becomes permanently disabled, what will happen to the value of the business? How is the value of the business interest transferred to the heirs of the business owner?
A new business book, Implementing the Buy-Sell Agreement, written by Rick Riebesell, a business consultant with Business Transition Consulting LLC, deals with the concepts that enable the business owner to begin the process of implementing a buy-sell agreement.
While implementing a buy-sell agreement is not a do-it-yourself project, it does require leadership and effort. Learning what is in this book and becoming interested in finding out more will help the business owner begin the process, know how to expend the effort, and help determine when professional help is required.
At its most rewarding, owning a business involves the creation of a process for making good decisions. This process, by necessity, will mean that a group of people involved with the business as employees, stakeholders, and owners are a part of the process. Nothing about this involves a majority owner losing control of a business.
Group decision-making is required for the creation of a succession plan. The buy-sell agreement is drafted from the succession plan. Once a business begins to engage in group decision-making, it has assembled the skills to formulate an owner agreement insurance the transfer of business value to the owner or the owner’s heirs to create personal wealth.
Rick Riebesell's perspective is unique. In addition to his fifteen-year experience as a consultant, he has been employed by businesses in a variety of roles, practiced law, owned and managed businesses, taught MBA classes, and dealt extensively with family business issues. His years of experience in working with owner-managed businesses has taught him that each business is unique. Having respect for the accomplishment of the entrepreneur in creating the business, he knows that often the skill set of the entrepreneur-founder does not include management skills or experience.