Learn about the benefits of a buy-sell agreement.
- A buy-sell agreement is an invaluable tool to help preserve a business’ long-term viability.
- It helps to ensure that each departing owner receives a fair price for his interest, and establishes a funding source for the purchase of each departing owner’s interest.
- The agreement should be treated as a “living document” that will evolve as a business moves through its life cycle, and the owners’ personal circumstances change.
An owner’s interest in a closely-held business often constitutes a significant part of his overall wealth. For an owner who is concerned about preserving the value of this “business capital” for himself, and/or as a legacy for his family, a well drafted buy-sell agreement (BSA) by and among all of the owners is critically important.
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