Buy/Sell Agreements

During business formation of entities with two or more owners, it is very important to determine what will happen should a shareholder/partner want to leave, retire, becomes disabled or dies. This is done by developing a legally binding Buy/Sell Agreement that each shareholder/partner will sign. The buy/sell agreements should dictate how the business will be valued. Most often, a certified valuation will be required to determine the value as of the date the shareholder/partner leaves the business. The valuation will determine the amount one shareholder/partner would pay another (or to their heirs in the event of death) to buyout the shareholder/partner’s share of the business.

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