A very important part of the organizational documents that is regularly overlooked by business owners are the buy/sell provisions. For most closely held businesses, the buy/sell provisions among the co-owners define how and when individual owners will ultimately realize a return on their investment in the venture. Although many owners are initially confused by the need to give significant attention to provisions dealing with exit scenarios during the early planning stages of the business, the confusion usually disappears very quickly as the owners begin to realize that these provisions define what they may ultimately get in return for all of their invested capital and effort.

Business owners need to prepare early for the day when they will part company for whatever reason. At some point down the road, every entrepreneur is going to have to, or want to, cash out or transfer his or her equity interest in the business. Someone is going to leave the business, die, become disabled, or experience a messy divorce.

Potential separation issues are just one very important part of the initial planning and documentation process that should be addressed in a calm, planning-oriented atmosphere and not at a point of crisis. Taking the effort to address these types of issues at the outset is also the most logical time to do so, when the business organizers are making other important decisions about their devotion of capital and energy to the business enterprise. Thinking and discussing key issues upfront often will bring to the surface the different expectations of the owners. It helps to have these expectations out in the open before irrevocable commitments are made to the business.