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 ?
Then in the event of your partner's death or disability, you would purchase your partner's portion of the business at a price determined by your buy-sell agreement. You would make this purchase with a lump-sum payment from one of your insurance policies.
Can your business survive without you or your partner?
A buy-sell agreement should include provisions voiding any attempted transfer of equity that would invalidate the S-corporation election.
OP-ED: Review that buy-sell agreement before trouble pops up
In order to avoid internal conflict and a smooth transition in situations where one or all owners desire to leave the business, a good buy-sell agreement may have any of the following additional provisions:
Considerations for Using Buy-Sell Agreements: The Advantages for Owners, Accountants, and Financial Advisors
In choosing your buy-sell agreement's initial language, consider the tax implications.
Buy-sell agreements need regular upkeep
* The parties ensure that the buy-sell agreement includes language defining "critical illness" in the same way as the critical illness policies.
Bridge the gap with critical illness insurance
If a key employee from outside the family will likely take over, the business may consider funding the buyout plan with an endorsement split-dollar buy-sell agreement. (Source: Crump Life Insurance Services)
One-way buy-sell agreements: the mechanics and benefits
Further, has the franchisor pre-approved ownership following the operation of your buy-sell agreement?
Buy-sell planning for franchisors or franchisees: a well-constructed buy-sell arrangement can provide peace of mind for you and your family that there is a succession plan in place to help take care of the needs of all interested parties
Betti offers the example of an insured buy-sell agreement. Consider a business with four owners and one dies.
Why insuring principal employees and owners may keep your business operating
At these meetings, you can update bylaws, cover buy-sell agreements, and generally take care of business.
New year's resolutions for business owners
4) Buy-Sell Agreement: If you own your business with others, you need a buy-sell agreement.
Five things you must do
One of the advisers on the team, Andrew Karlen of the law firm Karlen & Stolzar in White Plains, New York, says that a family business with co-owners generally should have a buy-sell agreement in place.
How to prepare your business for succession: here's five steps to passing on your business
Parrish: Businesses have a lot going on at any one time, and a buy-sell agreement has implications beyond just good governance.
Talking buy-sell reviews: two industry experts discuss various approaches to exit planning, business valuation and buy-sell agreements
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