Buy-Sell Agreement

A Buy-Sell Agreement is a contract providing for the sale of a business when a specified event occurs. Typically, the specified event is the death of one of the business owners — but it can also be disability or retirement.

Buy-sell planning is an effective way to provide for an orderly and strategic change of ownership when a business owner or principal can no longer perform his or her duties due to death or disablement.

A fully funded Buy-Sell Agreement can:

• Pre-determine the price at which the buyer agrees to purchase and the owner or owners agree to sell their interest in the business.
• Create a market for each owner's share of the business.
• Provide capital to fund the plan exactly when it is needed.
• Establish the value of the business for federal estate tax purposes.

For more information on how a Buy-Sell Agreement may serve your business or details on the types of Buy-Sell Arrangements that can be contracted, e-mail or call us at 630-236-7300.