A buy-sell agreement is a legally binding contract between business owners that outlines what will happen if one of the owners dies, becomes unable to continue their role, or wants to sell their interest in the business. The agreement typically provides for the purchase of the departing owner’s share of the business by the remaining owner (or owners), using funds from a life insurance policy on the departing owner. A buy-sell ensures that the business can continue operating smoothly in the event of an unexpected departure. buy-sell agreements can be an important tool for businesses of all sizes, but are particularly crucial for small businesses. This is because the death or departure of a key member can have a major impact on a small business, and buy-sell agreements can help protect the business from financial ruin in such scenarios.
If you’re a business owner, don’t wait. It is important to have a buy-sell agreement in place now to protect your business and its future. If you are interested in learning more about buy-sell agreements and how they can benefit your business, please contact our office to get in touch with a lawyer in our professional network.
Lastly, there are several benefits to having a buy-sell insurance policy in place for your business. This type of insurance can help ensure that the business you have worked so hard to build will be transferred to your chosen successor in the event of your death or disability. A buy-sell agreement funded with life insurance can provide the financing needed to make this happen, and can also offer peace of mind from knowing that you have taken steps to protect your family and your business interests. Furthermore, it provides you with comfort from knowing that this is one less thing to worry about during our current uncertain world. If you would like more information on how a buy-sell agreement could work for your business, please contact a financial planner today.
