Buy/Sell Agreement

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A buy/sell agreement documents the agreed terms of business partners (whether in a partnership, company or trust structure) in the event that one partner wishes to sell their interest in the business or in the event of the death or total and permanent disablement of one of the owners. It is essentially a pre-nup for any business structure. Generally, the terms contained within a buy/sell agreement are best incorporated into a broader partnership or shareholders agreement but sometimes this is not necessary.

A buy/sell agreement can include provisions on:

Events which will trigger the buy/sell provisions.
How the value of the interest will be determined.
How payment of the interest is to be made.
How the interest is to be transferred and to whom.
Requirement for the business owners to carry certain insurances where proceeds can be used as payment for the departing partner's interest.

If you would like a Buy/Sell Agreement drafted, or you have been provided with one which you would like reviewed, please contact one of our small business lawyers.

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01:20 22 Aug 19

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06:04 10 Dec 19

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06:16 20 Feb 20

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Buy/Sell Agreement

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