Ensure the smooth continuation of your business in case of disruptive events, like the death of a partner.

Buy-Sell Agreements

A buy-sell agreement is a legally binding contract that allows a business entity, shareholder, or partner to purchase an interest in the business when an owner leaves or dies.  Additional specified events also qualify.  A buy-sell agreement typically states when, to whom, and at what price and interest in the business will be sold.

Benefits of A Buy-Sell Agreement

The main benefit of a Buy-sell agreement is the smooth transition for and continuation of your business.  Additional benefits include:

• Reassuring your creditors, clients, and employees
• Safeguard the value of your business and support it’s entity status
• May prevent unexpected estate-tax consequences

Setting Up Your Buy-Sell Agreement

You should plan your buy-sell agreement in detail.  Your attorney may request that your buy-sell agreement specific the condutuins under which the interest in your business be sold.  Events that will trigger the buy-sell agreement may include

• Death of a busines owner
• Retirement, resignation or termination of a partner or shareholder
• Long-term disability
• Legal, personal or financial issues