Business Buy-Sell Agreements

Ensure smooth transitions and protect your business’s legacy with buy-sell agreements. Our services offer continuity for both ownership and family interests. Safeguard your business value for long-term security.

Benefits of Business Buy-Sell Agreements

Ensure Business Continuity

A buy-sell agreement ensures the seamless transfer of ownership, maintaining business operations.

Prevent Ownership Disputes

Clarifies ownership transition rules, reducing conflicts among remaining owners, heirs, or external parties.

Facilitate Retirement Planning

Allows business owners to plan their exit strategy, ensuring a smooth transition and financial security during retirement.

Attract and Retain Key Employees

Demonstrates a well-structured plan for ownership, which can instill confidence in employees and stakeholders.

Secure Funding for Buyouts

Buy-sell agreements often incorporate life insurance or disability insurance policies to fund ownership transfers.

Protect Business Reputation

Avoids disruptions or public disputes over ownership, preserving the company’s credibility and market standing.

questions and answers

What is a business buy-sell agreement?

A buy-sell agreement is a legally binding contract among business owners that outlines the terms and conditions for transferring ownership in case of specific events, such as death, disability, retirement, or an owner leaving the business.

Why is a buy-sell agreement important for my business?

It ensures a smooth transition of ownership, protects the business from disruptions, avoids disputes among stakeholders, and secures fair compensation for departing owners or their heirs.

How is the value of the business determined in a buy-sell agreement?

The agreement typically specifies a valuation method, such as a fixed price, formula-based valuation, or an independent appraisal, ensuring clarity and fairness during ownership transfers.

What are the common funding methods for buy-sell agreements?

Funding is often done through life insurance policies, disability insurance, business reserves, or installment payments, ensuring liquidity for buyouts without straining the business financially.

Who should have a buy-sell agreement in place?

Any business with multiple owners—such as partnerships, corporations, or LLCs—should have a buy-sell agreement to protect the interests of the business and its stakeholders.