| p>Should a template be used to create your buy-sell | | | | language used in older agreements could be clear only |
| agreement? Templates are forms used by many | | | | by chance. And chance is not good enough! |
| professionals to facilitate the initial drafting of | | | | A Few Recommendations: |
| documents. Like valuation professionals, attorneys also | | | | |
| use templates. It is important to recognize that a | | | | 1. If you have a buy-sell agreement, consider having it |
| template is nothing more than a framework for | | | | reviewed from both a business and a valuation |
| answering and documenting the answers to important | | | | perspective. |
| questions. Templates also have to be updated | | | | 2. If you know there are problems, do not stop until you |
| regularly because of legal and valuation changes which | | | | are satisfied that they are resolved and your |
| render the current forms unusable. | | | | agreement reflects a consensus understanding of its |
| The problem with out-of-date definitions is far greater | | | | future operation. |
| than definitions embedded in current templates. Many | | | | 3. If you are currently drafting a buy-sell agreement, |
| thousands of buy-sell agreements created over the | | | | consider obtaining valuation expertise to ensure that |
| last fifteen or twenty years (or more) contain language | | | | the valuation aspects of the agreement are clearly |
| that has not been updated. Given recent changes in | | | | understood in the context of current financial and |
| valuation theory and practice, the valuation defining | | | | valuation theory. |