BUY SELL AGREEMENTSBuy Sell Agreements • February 28th, 2012
Historically, the cattle industry has relied on verbal agreements and handshakes to seal the deal. The final agreement is seldom reduced to writing and each party may walk away with a different understanding of the terms of the verbal agreement. Carefully drafted written agreements setting out the agreed terms can eliminate disputes and prevent costly litigation. This article will attempt to inform the reader of basic aspects of a properly drafted bill of sale.
Buy-Sell AgreementsBuy-Sell Agreements • January 25th, 2024
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.
Buy-Sell AgreementsBuy-Sell Agreements • January 25th, 2024
BUY-SELL AGREEMENTSBuy-Sell Agreements • April 30th, 2018
An essential tool for succession planning and managing ownership rights and obligations, buy-sell agreements are appropriate for most every type of business and business entity.
Buy-Sell AgreementsBuy-Sell Agreements • November 26th, 2007
Charlotte and Suzy started a business as equal partners ten years ago and worked hard to make it successful. They had gone to college together and were the best of friends. They built their business into the region's biggest widget manufacturer. The business grossed
Understanding Buy-Sell AgreementsBuy-Sell Agreements • August 19th, 2010
A buy-sell agreement, also known as a buyout agreement, is a binding agreement between co-owners of a business that governs what happens if a co-owner dies or is otherwise forced to leave the business. Surviving owners generally want to ensure a continuity of ownership and management without having the departing owner’s inheritor thrust upon them. They also do not want to unduly compromise the cash flow needs of the business by funding a significant buyout.
Buy-Sell AgreementsBuy-Sell Agreements • July 25th, 2013
A Buy-Sell Agreement is an agreement among the owners of a business to control who can own the shares or an interest in your business in the future and how much the interests will be worth in the event of an owner’s death, disability, bankruptcy, divorce or retirement. The reason for having one is simple – you’ll want to avoid the headache, heartache, and expense of a dispute and potential lawsuit among you and your partners when one of you decides to depart, dies, gets divorced, goes bankrupt, or tries to sell to a third party. You could be placing yourself at grave risk to be in business with someone you never intended.
