Avoiding estate mistakes

In business, buy / sell contracts are usually written by attorneys. Unfortunately, they’re often written by attorneys who don’t understand at a necessary level the significant implications of the language they use regarding the valuation of company assets.

In the regular affairs of business, equipment valuation is often forgotten or overlooked – until, of course, it’s time to execute a buy / sell agreement and one party in the agreement feels they have been misled or shorted on value. Lease agreements and insurance policies covering equipment are unique, and they contain language that can be misunderstood by business owners and their professional advisors. Add it all up, and it can mean a lot of frustration and confusion at a time when it’s least needed.

This is particularly true in situations involving the estates of business owners. Bereaving family members don’t often understand the business or the value of its assets, which means buy / sell agreements written and enforced by surviving shareholders can cost the estate heirs significant funds in a manner which the departed spouse or parent almost certainly would not have wanted or intended. 

This is why working with an experienced professional in equipment and asset valuation who understands the implications of contract terminology can be a wise investment, especially in estate or other exit planning situations. It can also keep business owners or shareholders from being shocked at the time of future estate transactions. If you know anyone who may have to go through a situation like this in the near future because of a family business with which they are involved, have them get in touch with a qualified business asset appraiser.