Many businesses today lack formal buy/sell agreements between owning partners. In the event a business does have an agreement in place, it is not usually reviewed to ensure sufficient and proper funding. Fixing this common mistake can be inexpensive, yet critical to business owners, as a properly-funded agreement ensures the succession of a business and provides the current market value to each partner if an unexpected tragedy occurs.

Some business owners believe their spouse or a key employee will run the business if they become unable to do so. Others think a competitor will simply buy their business if they are no longer around. Many think that their death or disability will not impact the business financially. Unfortunately, none of these misconceptions are further from the truth.

Read the rest of Doeren Mayhew Insurance Group’s latest article here for more information on buy/sell agreements and why it is critical your business has one in place.