Buy-Sell & Key Person Insurance
The buy-sell agreement can establish the value of the business, assure that there is a buyer for the business and improve the creditworthiness of the business. A buy-sell agreement can serve as a formal exit strategy that ensures everyone is treated fairly, the business is in a position to continue and the family is well cared for.
With a buy-sell agreement, the business owners enter into the agreement that sets out the terms and conditions of the sale of their business interest at some point in the future.
These terms and conditions may include the person who will purchase the interest, what triggers the buyout, when the sale will take place, the value of the interest and how the purchase price will be paid.