How valuation expertise strengthens buy-sell agreements

Description

Abstract: A solid buy-sell agreement can help closely held businesses avoid disruptions when a shareholder leaves the business. This article explains critical business valuation issues to address when drafting or reviewing a buy-sell, including the appropriate valuation method, level and standard of value, and valuation date. A sidebar highlights why it’s important to specify whether life insurance is an asset of the business or merely a funding mechanism.