Do you and your co-owners have a strategy in place to transfer your business to the right people, at the right time, for the right amount of money? Having a buy-sell agreement in place can help protect the future of your business.
A buy-sell agreement is key to your exit strategy. It creates a market for your business when an owner dies, becomes disabled or leaves. When structured correctly and funded properly (e.g., life insurance), a buy-sell agreement can help provide a solid start to your exit plan.
You and your family can be protected by having co-owners buy your interest in the business for a set price and providing them the funding to do that if you die, become disabled or leave the business.
Co-owners get protection by providing them the opportunity and funding to purchase the business interest of a deceased, disabled or departing owner.
Minimize conflicts among owners by setting the price and terms of a sale when an owner leaves the business.
Protect the business by preventing and/or limiting transfers to parties that might be unqualified or undesirable, by requiring certain restrictions.
Fix the value of your business interest for estate tax purposes if the price meets IRS guidelines at the time the agreement was signed.