Buy/Sell Agreements
Preparing for Change
A buy-sell agreement is a legally binding contract that outlines the steps to be taken when an owner departs the company. A well-structured agreement acts as a safety net for your business, helping in several ways:
- Smoothing the transition of ownership. The agreement clearly defines how ownership interests will be transferred, ensuring a seamless transition without disputes.
- Establishing fair valuation. The agreement establishes the business's fair market value, preventing conflicts among remaining owners and heirs.
- Providing financial security. The agreement ensures funds are available to buy out the departing owner’s share, protecting the business from financial distress.
Customized Insurance Solutions for Buy-Sell Agreements
Customized insurance strategies can be a powerful tool in implementing an effective buy-sell agreement and supporting your business. Consider the following examples:
- Life insurance provides the necessary capital to buy out a deceased owner’s share, ensuring the business remains solvent and family members are compensated fairly.
- Disability insurance offers financial support if an owner becomes disabled, facilitating the purchase of their interest and maintaining business operations.
Connect with a Trusted Executive Benefits Advisor
Rich Vogel
Managing Director, Executive Benefits
Contact Rich Vogel
Atlanta
Bob Kelleher
Senior Vice President Employee Benefits
Contact Bob Kelleher
Toledo