buy-sell agreement


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buy-sell agreement

An agreement among partners or shareholders describing the circumstances and terms of sale if one or more wish to exit the arrangement or wish to sell their shares to an outsider.

References in periodicals archive ?
The key person and buy-sell agreements protect the business and make sure it can keep operating.
If the IRS determines that fair market value is higher than the amount calculated under a buy-sell agreement, the estate could owe tax on an amount it never received, leaving heirs much less than anticipated.
While this may seem the best way to keep the value in the document flexible, there are some hidden traps that need to be attended to in the buy-sell agreement.
Non-compete component - If the triggering event is something other than death, partners should consider having a geographical and time specific noncompete agreement incorporated into their buy-sell agreement.
Buy-sell agreements should also be clear on who controls the business on death, disability or divorce, says Harping.
Previous editions were published under the title Buy-Sell Agreement Handbook.
Simply defined, a buy-sell agreement (variations include cross-purchase and stock redemption agreements) is a provision that allows the seamless transfer of company equity in the event of a partner or owner death.
has a shareholder buy-sell agreement in place for the company's shareholders.
El Primer Banco del Istmo signed a buy-sell agreement with Banco Grupo el Ahorro Hondureno (BGA), under which the Panama bank can buy an as yet unspecified number of shares.
A properly designed buy-sell agreement will require the sale and purchase of the business for a prearranged price.
As a dot-com entering into a joint venture, as someone who has liquidity, I'm going to want to have a buy-sell agreement and be able to buy or sell what I want to buy.
You are sole proprietor, partner or shareholder of a closed corporation and you ask, "What is a buy-sell agreement and why do I need one?