Many business owners rarely think about the day when their business arrangement may change or even end; however, the fact remains that in every business with more than one owner, buy-sell agreements are extremely important documents to consider. Unfortunately, they are often overlooked in a business plan. Don't wait until a tragedy or conflict arises! Buy-Sell Agreements gives you everything you need to create a legal agreement that protects both the business and the interests of all partners involved.
Consider this example: two friends incorporate a start-up, with each holding half the shares. The business is quickly very successful. One of the partners dies in a traffic accident. There is no buy-sell agreement and the deceased partner has left his shares to his brother, who wants the business to pay dividends, not reinvest for growth.
That is the kind of problem a buy-sell agreement is designed to avoid: an "unfriendly" change in the equity holders of a business.
The book takes you through the planning and detail steps to preparing a buy-sell agreement, explaining concepts and providing examples so when you work with a lawyer to write up the agreement you will understand the issues and save a lot of time and expense.
In this book you will learn about:
- What a buy-sell agreement is and the reasons for having one.
- The three main types of buy-sell agreements: redemption agreements, cross purchase agreements, and hybrid agreements.
- The possible triggering events, which are the events that bring a buy-sell agreement into action, together with the potential various responses in the buy-sell agreement to triggering events once one has occurred.
- The different ways to pay for purchases pursuant to buy-sell agreements, including life insurance, and the impact of life insurance on valuation of the entity.
- How valuation can work in buy-sell agreements, including how the Internal Revenue Service (IRS) might value an interest in a family business entity.
- Common errors that people make in buy-sell agreements.
- Working with professional advisors.
- A chapter written expressly for your professional advisors.
- Seven examples of buy-sell agreements in action.
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|File Size||1.8 MB|
|Library Sales?||Not for sale to libraries|