Business Buyout Agreements: Plan Now for All Types of Business Transitions
It happens to any business that’s owned by more than one person: Sooner or later, one or more owners will want or need to leave the business. What happens when you’re ready to move on? Or what happens to your company if one co-owner wants to retire, files for bankruptcy, or goes through a divorce? Unless you plan in advance, it could threaten the survival of your business.
In short, it’s essential that you create a simple but effective “prenuptial agreement” for your company with a buyout agreement (buy-sell agreement). This document clarifies:
- when you or your co-owners can sell ownership interests
- the circumstances requiring an owner to sell (personal bankruptcy, for example)
- how much departing owners can ask for their shares, and
- how long continuing owners have to pay the former owner.
Business Buyout Agreements walks you through the creation of your own legal agreement―before issues come up and cause problems. It provides all the tax and legal information you need at every step, such as how to structure the agreement to avoid estate taxes. You’ll have a clear, fair agreement―and peace of mind.
We would LOVE it if you could help us and other readers by reviewing the book