Buy-Sell Agreements.
(Insurance Funded Business Wills)
-
First and foremost, we need to understand the your business, your partners, and the specific needs and expectations related to the Buy-Sell Agreement.
This includes understanding your business model, ownership structure, and future plans.
-
Based on the your needs and state law, the we will draft the Buy-Sell agreement.
This document will stipulate conditions such as when the agreement can be triggered (e.g., retirement, disability, death, divorce, bankruptcy, etc.), the method for valuing the business, and the terms of the purchase.
-
After the initial draft is completed, we will review it with you to ensure that it meets your needs and expectations. We will revise the Agreement as necessary based on your feedback.
-
If there are multiple parties involved, such as in a partnership or multi-member company, we may also assist in negotiating the terms of the Buy-Sell Agreement with the other parties.
-
We will ensure the Agreement adheres to local, state, and federal laws. This could involve tax laws, securities laws, or other relevant regulations.
-
Once the Agreement is finalised and signed, we may assist in implementing the Agreement. This could involve setting up insurance policies, creating an escrow account, or other tasks as required by the Agreement.
-
We will also be available to enforce the terms of the Agreement should a trigger event occur.
This could involve overseeing the business valuation process, ensuring the sale is conducted appropriately, and addressing any disputes that arise.
Additionally, we can review and update the Agreement as the business evolves and circumstances change over time.
Services
It is important to consider what would happen to your business if you died suddenly or suffered an injury/illness that kept you out of business.
This is doubly important if you are in business with others. Your family needs certainty that they will receive fair value for your business assets. And the other owners need certainty that they can achieve a clean break with your family and not left carrying silent partners.
You may have heard the term “Buy Sell Insurance Arrangements” where a life insurance policy funds the purchase of a an exiting persons share of the business by the other business owner/s who want to continue .
What you might not know is the legal documents that you will need, will vary depending upon how the life insurance is structured. We have extensive experience in preparing the legal documents for Buy Sell Insurance Arrangements tailored to suit almost every life insurance structure.