Buy & Sell Agreement can also be knowns as Buy-Sell arrangement, and is a legal contract outlining what will happen in the event of death, disability or retirement of a business owner (where there is more than one) – and can also cover what will happen if an owner wishes to sell their interest in a company.
(This is different to an Agreement for Sale & Purchase of a Business of a company. Were you looking for information on buying a business or selling a business?).
Buy & Sell Agreements usually state that an individual’s interest in a company must be sold back to the other owners of the company (rather than on the open market, or pass into the control of a power of attorney in the case of disability or to an estate in the case of death).
A Buy & Sell Agreement can be drafted in conjunction with life or disability insurance purchased by the other business owners, and we regularly liaise with insurance companies to tailor Buy & Sell Agreements to fit. We can also put you in touch with insurance experts in this field if needed.
However, a Buy & Sell Agreement does not require you to have insurance to cover the agreement.
A Buy & Sell Agreement should be specifically drafted to reflect the specific nature of the business, how it is owned, the number of owners etc, and reflect on the tax implications and estate planning implications.
Our team of Buy & Sell Agreement Lawyers can draft for you the right agreement for your situation, and assist with negotiations between the owners.
Talk to our buy-sell agreement lawyers today for help with:
- Understanding how a Buy & Sell Agreement would work for your business
- Integrate a Buy & Sell Agreement into your estate planning
- Drafting a tailored Buy & Sell Agreement
- Liaising with insurance brokers (where appropriate)
- Ensuring you fully understand the agreement and implications
