Q & A:

QUESTION
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Q:    How does a “buy-sell” agreement work?

—Curious CFO

ANSWER
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A:     Dear Curious:
If you share ownership of your business with one or more other people, a buy-sell agreement ensures that upon certain conditions—such as your death or permanent incapacity—the other owners are able to purchase your shares of the business, or it can stipulate that your shares will pass to your heirs.

In this way, a properly prepared buy-sell agreement can prevent your family members from getting stuck owning a business they don’t want and can’t sell. And it also protects your surviving partners from being forced to deal with new owners they never planned on.

As a Family Business Lawyer™, we can support you to prepare a new buy-sell agreement for your company, or review your existing agreement, if you already have one—even an agreement prepared by another lawyer.