Business owners: Now’s the time to revisit buy-sell agreements
Abstract: A buy-sell agreement is a critical component of estate and succession plans for those who own a closely held business. These agreements provide for the orderly disposition of each owner’s interest after a “triggering event,” such as death, disability, divorce or withdrawal from the business. This article explains how a buy-sell agreement works and why the valuation provisions are especially important. A sidebar details two types of buy-sell agreements.