Common Contracts
1 similar Buy-Sell Agreements contracts
Buy-Sell AgreementsBuy-Sell Agreements • January 31st, 2017
A buy-sell agreement is a legal arrangement between business owners where they agree to purchase each other’s shares upon the occurrence of a triggering event such as death, disability, or retirement. The agreement creates future financial obligations that are typically funded with life and disability insurance. A properly structured buy-sell agreement provides several benefits to business owners including establishing a buyer, setting a selling price, creating estate liquidity, fixing the business value for estate purposes and insuring a proper transfer of ownership. The three main types of buy-sell agreements are entity purchase, cross purchase, and one way arrangements.
