BV530 Valuation Provisions in Buy-Sell Agreements

Webinar Description

Often, the owners of a closely held business have entered into a buy-sell agreement among themselves and the business entity. A buy-sell agreement effectively serves as a prenuptial agreement among investors -- reflecting the parties' relative rights and "ground rules" regarding the purchase or sale an ownership interest in the business upon certain triggering events such as the termination, retirement, or death of an owner. This webinar will explore the various types of buy-sell agreements; commonly-encountered pricing mechanisms and processes; and valuable "practice points" designed to avoid confusion and conflict, and increase the opportunity for a reasonable, timely, and cost-effective resolution.

Learning Outcomes

Upon webinar completion, the participant will be able to:

• Communicate effectively with business owners and/or counsel when presented with a buy-sell valuation opportunity;
• Differentiate between the various forms of valuation analyst processes commonly found in buy-sell agreements;  
• Maximize the opportunity for effective resolution of potential conflicts that arise when buy-sell valuation provisions are triggered; and  
• Recognize the potential pitfalls of buy-sell agreements so that they can be successfully navigated and/or avoided.

Course Audience

Business appraisers, business owners, attorneys involved in the drafting or execution of buy-sell agreements

Instructor Information

Jeffrey S. Tarbell, ASA | Houlihan Lokey

Jeffrey S. Tarbell, ASA, CFA, is director of financial and valuation advisory at Houlihan Lokey. He has over 30 years of experience in valuation and financial opinions. Mr. Tarbell has been a designated member of ASA for 25 years, and an active volunteer with numerous leadership positions, including most notably serving as the current Region 5 Governor of the ASA Board of Governors Committee and the past Chair of ASA’s Business Valuation Discipline Committee. He is also an expert witness, instructor, author and frequent speaker. Carla Nunes is a managing director in the Office of Professional Practice (OPP) of Kroll, based in the Philadelphia office, and a Kroll Institute Fellow. She has over 25 years of experience. In her OPP role, she provides firm-wide technical guidance on a variety of valuation, financial reporting and tax issues. She is also the global leader of Kroll’s Valuation Digital Solutions group, which produces the cost of capital thought leadership content and data housed in the Cost of Capital Navigator.

Z. Christopher Mercer, FASA | Mercer Capital

Chris is the Chairman of Mercer Capital. He began his valuation career in the late 1970s and he has prepared, overseen, or contributed to hundreds of valuations for purposes related to tax, ESOPs, buy-sell agreements, and litigation, among others. In addition, he has served on the boards of directors of several private companies and one public company. He enjoys working with business owners to address ownership transition issues. Chris is a prolific author on valuation-related topics, including Buy-Sell Agreements for Closely Held and Family Business Owners (Peabody Publishing, 2010).

Continuing Education

Review of this session recording will award 2 CE hour(s). 

CPE credit is not awarded for this pre-recorded offering.