Notice: register_sidebar was called incorrectly. No id was set in the arguments array for the "Sidebar 1" sidebar. Defaulting to "sidebar-1". Manually set the id to "sidebar-1" to silence this notice and keep existing sidebar content. Please see Debugging in WordPress for more information. (This message was added in version 4.2.0.) in /home/inperzdl/public_html/neelcartoons.com/wp-includes/functions.php on line 4148
Neel Cartoons Business Experts » Blog Archive » Buy And Sell Agreement

Neel Cartoons Business Experts

Perth Business Blog

rainbow

Buy And Sell Agreement

Owning your own business and becoming an entrepreneur can be tricky especially when partners are involved; it can become even more complicated, especially if something were to happen to one of them.

business news perth

A buy-sell agreement is an agreement between a business’ owners that details what is to occur if there are significant changes in the life of a business partner. Divorce, personal bankruptcy and death are only a few of the changes that can adversely impact a business partnership. On the other hand, with a properly constructed Buy-Sell agreement, the pain of dealing with these changes can be minimised and your business can continue to thrive.

Does your business need a buy-sell agreement? There are several reasons for entrepreneurs to enter into buy-sell agreements with their partners or co-stakeholders:

The first purpose of buy-sell agreement is to create a market for the owner’s business interest at certain triggering events such as death, disability or retirement.

The second reason is to facilitate a smooth transition of management and control for the surviving or remaining owners.

Third, buy-sell agreements are used to provide a mutually agreeable price and terms (so as to avoid litigation and friction).

The next reason is to provide the family of a deceased owner with liquidity rather than a non-marketable business interest.

And finally, business owners use this type of agreement in establishing the value of the business for estate tax purposes.

Learn more about buy-sell agreement right here: http://www.investopedia.com/terms/b/buy-and-sell-agreement.asp