Every business with multiple owners should have a buy-sell agreement, and those that already have one should review it periodically to ensure it is up to date. There are many different types of agreement structures and funding mechanisms, each of which has advantages and disadvantages. Regardless, the reasons for having a buy-sell agreement are well established:
Topics: Cap Willey, Buy-sell agreements, multi-owner business
Buy-sell agreements are like a will for a business and its owner, allowing the owner to keep control of their interest until retirement, death, disability, or divorce. It is especially useful for a business owner who has ruled out giving the business to children or family members, who doesn’t have management readily available to run the business, but who has identified a potential owner or group of owners.
Topics: Buy-sell agreements, succession plans
