Owning a small business is often the dream of any employee who toils behind a desk or stacks boxes at a megacompany. Millions of Americans sprint for that goal, often by partnering with someone they know and think can help achieve it. […]#lifeinsurance #businessplanning #businesssuccessionplanning
Events like the death, disability, or retirement of an owner don’t have to mean the end of the business. Business succession planning can provide for an orderly transition of ownership and business management, during lifetime or at death.
One tool used in business succession planning is the buy-sell agreement. A properly designed buy-sell agreement can allow you to keep control of your business until death, disability, retirement, or any other specified event.
This White Paper will provide an overview of buy-sell agreements in general, reasons why you might want to have a buy-sell agreement, and a brief description of each specific type of buy-sell agreement.
A buy-sell agreement identifies a buyer or potential buyer of your business interest and the conditions under which a sale will occur. The buyer could be an individual or an entity, and there can be more than one buyer.
Typically, once you are bound under a buy-sell agreement, you can’t sell your interest in the business to any party except the buyer named in the agreement. More frequently, the agreement involves the rights of first refusal, so the potential to sell to a third party is possible.
If you’re a business owner and have more questions about a buy-sell agreement, or any other structure that protects the business integrity in the event of a partner’s death, please schedule a no-cost consultation. Just click the scheduling link below.