Despite the name of this type of contract, a buy sell agreement has very little to do with purchasing or selling a business. While part of a buy sell agreement may, in fact, address the purchase or sale of a business, a buy sell agreement is designed for co-owners or partners of the business.
A better understanding of buy sell agreements is to think of them as buy out agreements. The buy sell agreement is a document that details the process of one partner or co-owner buying out another in an existing business. Buy out agreements cover a wide range of potential scenarios, such as:
- Death, divorce, and relocation of the partner or co-owner
- When an owner may sell his/her share of the business
- How the value of the owner's share is determined
- Retirement planning
- Irreconcilable differences between partners or co-owners
An experienced business law attorney can also use a buy sell agreement to address many concerns such as:
- How personal bankruptcy can affect the business
- How lawsuits against a co-owner can affect the business
- Can a former spouse of the co-owner seek ownership
Our experienced business law attorney has drafted many buy sell agreements over his 30 plus years of experience. Contact our law firm today to schedule a FREE Consultation and learn how the appropriate business documents can you save you time, money and even your business!