Buy Sell Agreement
A buy-sell agreement is known as buyout agreement and a contract that provides for the future sale of business interest or for your purchase of a co-owner’s interest in the business.
Ideally, buy-sell agreements are fully funded, and life insurance is frequently used for this purpose. After determining the value of the business, you, your advisors, and the other parties to the agreement will determine the best way to fund the transaction, and the triggers appropriate for your business situation.
If you own a business and are concerned about how the death of a co-owner might affect its operation, a funded buy-sell agreement can help by ensuring that you will be able to purchase your partner’s share, eliminating any doubts about the continuation of the business. You can also avoid the dilemma of being in business with your partner’s survivors.
You think you need a buy-sell agreement to protect yourself? Approach us to let us consult you and give you the best with our professional financial consultant.