Seikaly & Stewart PC v. Fairley et al

Filing 1

COMPLAINT. Filing fee received: $400.00, receipt number PHX 0970-9418622, filed by Seikaly & Stewart PC. (submitted by Michael Pianin) (Attachments: # 1 Exhibit, # 2 Exhibit, # 3 Exhibit, # 4 Exhibit, # 5 Exhibit, # 6 Exhibit, # 7 Exhibit, # 8 Exhibit, # 9 Exhibit, # 10 Civil Cover Sheet)(REK)

Failure to Establish Buy-Sell Agreements Fatal Error for
Business Partners
Sep 05 2012
Naperville Business Attorney / Naperville Business Lawyer / Oak Brook Business Attorney /
Oak Brook Business Lawyer / Starting a Business —
All business partnerships start with the best intentions, but many do not end that way. This is
why buy-sell agreements are so important, and every company with multiple partners or
shareholders should have one from the moment the business is formed.
A buy-sell agreement is a contract between partners in a business that dictates who can buy a
departing partner’s share of the business and establishes a fair price for the partner’s stake. If a
co-owner wants out of the business, wants to retire, wants to sell his shares to someone else, goes
through a divorce, or dies; buy-sell agreements act as a “premarital” arrangement to protect
everyone’s interests, setting the price and terms for buyout options.
Lets say that you and your business partners, Brian and Dan opened your company in Illinois 20
years ago, but the business never established a buy-sell agreement. The company is now worth
millions, but Brian has died of a sudden heart attack, and his young wife of two years now wants
an active management role in business decisions. At the same time, Dan decides to retire and
turn his shares of the company over to his son who never finished high school. What do you do?
Sound impossible… Think again… Only a buy-sell agreement 20 years earlier would have
prevented the years of litigation to come.
Any business in Illinois that is owned by more than one party, or, any person who is entering into
a multiple person business partnership needs to consult with an Illinois Business Lawyer for a
buy-sell agreement. Without setting up your new business properly, you’re gambling with your
future interests.
For experienced legal advice on buy-sell agreements from a knowledgeable business attorney in
the DuPage County Illinois area, contact the Gierach Law Firm at [phone].