Buy-Sell Arrangements

Protecting The Terms of Your Business Partnership

If a business partner dies, a Buy-Sell Agreement protects the business and remaining owners from inactive, uninformed, and potentially dissident shareholders and helps consolidate control in the hands of the agreed upon group. This is accomplished by providing clear terms for transferring ownership sharesupon certain triggering events such as the death, disability or retirement of a partner.

Additionally, a Buy-Sell Agreement helps fix the value of each owner’s business interest by requiring the valuation of shares that will be transferred following a triggering event.

Funding the Buy-Sell Agreement upon the death of a shareholder is a key provision all parties must consider. For most situations, life insurance is the most effective manner of managing this risk.