Buy-Sell Agreement
A buy-sell agreement is a legally binding contract that protects the interest of the company’s owners and permits that business to continue in the vent of the death, disability, or retirement of a business owner. By auditing or preparing a buy-sell agreement, when drafted, a buy-sell plan can be thought of as a written agreement to help businesses navigate a successful business transition.
Provisions include:
- Company Value/Business Interest
- Identifies the buyer and mandates when they must buy the interest
- Funding mechanisms such as life insurance and disability income
- Business dissolution instructions and valuation adjustment
