Preparing for any business scenario – A buy-sell agreement can steady a company through uncertain times
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Description
Abstract: Smart business owners work to control the risks they can — such as if an owner leaves the company. To guard against the negative consequences that might arise from such a predicament, it’s important to be proactive and establish a buy-sell agreement. This article looks at some of the details of a buy-sell agreement, which is a contract among a business’s owners that sets guidelines for the transfer of their ownership interests. It discusses using life insurance to fund an agreement, while a sidebar explains the difference between fair market value and investment value when determining how to value a business.
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