The business sets aside liquid assets over time.
A buy-sell agreement is a legally binding contract between business co-owners that acts as a "business will," detailing how an owner's interest will be transferred or sold upon specific "triggering events" like death, disability, or retirement. It ensures business continuity by preventing outsiders from gaining control and establishing a fair, predetermined price for ownership stakes. buy sell agreement for small business
“A buy-sell agreement is a foundational document typically established when an LLC is formed or shortly thereafter. Created with precise legal language, it ensures that both departing and remaining members are treated fairly.” KPPB LAW The business sets aside liquid assets over time
Spreads the cost over several years to ease financial pressure. “A buy-sell agreement is a foundational document typically
Uses financial metrics like a multiple of EBITDA or revenue. It provides objectivity but may fail to capture intangible assets like goodwill.
Outlining how the remaining owners or business will pay for the buyout. Common Agreement Structures