Buy-sell agreements — Cover all the valuation bases
Abstract: Buy-sell agreements act as a form of insurance to protect companies during significant ownership changes, whether foreseen or unforeseen. A good agreement’s buyout terms and provisions can ensure the company remains stable and solvent through upheaval. This article notes the importance of periodic updates and discusses the elements of a well-reasoned, supportable buy-sell agreement. The article points out how an experienced valuator can help ensure the agreement is fair to all shareholders.