Washington DC Redemption Agreement Lawyers
A Washington DC redemption Agreement lawyer you can trust is an invaluable resource for your business. At Antonoplos & Associates, we have provided legal services to small and large businesses for over twenty years. As such, our group of skilled attorneys have the knowledge and experience required to guide your business through legal issues associated with redemption agreements.
Why You Need A Redemption Agreement Lawyer
Most business owners face business-related legal decisions on a daily basis. As the owner of a business, this should be no surprise and for many business-related legal issues, an attorney is not necessary. However, when polled, most business owners don’t have a trusted business attorney to represent their business when legal issues occur. The reason many business owners stated that they didn’t already have a relationship with a business attorney was that they thought that a skilled business attorney would be too expensive for the needs of a small business. As such, most business owners only hire a business lawyer when serious legal issues come up.
At Antonoplos & Associates, we don’t think you need a business lawyer for every decision you make. However, consulting an experienced business attorney is an invaluable resource for your company for two reasons. First, a good business attorney will be able to offer guidance on many issues such as reviewing the terms of an office space or storefront lease, drafting contracts that will establish business partnerships, or review redemption agreements. Overall, incorporating a business attorney in general decision making ensures that your business will not enter into any potential disastrous agreements. Secondly, by discussing important parts of your business with a business attorney, this attorney will be better equipped to represent you in the event that litigation occurs. For these reasons, consulting and incorporating a business attorney into your business’s general decision making can even save your business money.
Below, you will find more information on how Antonoplos & Associate’s business law practice can help your business with redemption agreements.
What is a Redemption Agreement
Redemption Agreements are valuable tools in business succession planning for closely held companies. These types of agreements allow owners of a company to determine in advance, the terms of purchasing or transferring ownership interests in the event that one of the owners departs the company.
Furthermore, Redemption Agreements are agreements between the owners and the company, where the company itself is obligated to redeem the ownership interest of the departing owner. On the other hand, a Sale of ownership interest agreement typically provides that a departing owner is required to sell, or offer to sell, his or her ownership interest to the remaining owners. Likewise, a Transfer or ownership interest agreement generally provides that a departing owner must transfer his or her ownership interest to designated individuals or entities.
Redemption Agreements generally address who can purchase or redeem the departing owner’s interest and the price-or method to determine the price-of such interest. Additionally, these contracts also outline the events that would trigger the redemption, sale, or transfer of ownership interest agreement. Accordingly, these agreements are advantageous in closely held businesses because they allow the owners to create a succession plan for departing owners, and to maintain continuity of the business before any issues can arise.
Carefully drafted Redemption Agreements can guard the remaining members against being burdened with untested or unknown successors and can minimize the potential for disputes and stress among the co-owners caused by the uncertainty of a departing owner. However, these types of agreements should be periodically reviewed for feasibility. For example, feasibility is important to ensure that the company has sufficient funding to redeem the shares – and also for practicality, to confirm that the terms and conditions still meet the owners’ and company’s needs and objectives.
For more information on Redemption Agreements, please contact Antonoplos & Associates at 202-803-5676 or on the web at www.Antonlegal.com.
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