BUSINESS DOCUMENTS-Buy-sell agreements that work
Buy-sell agreements should be customized to meet the needs of the respective owners but will answer these universal questions: (1) what succession events; e.g., death, disability, or retirement, may affect the future of the business? (2) who will ownership interests be transferred to; e.g., outside party, children, or existing partners? (3) how will the business be valued if an interest is to be transferred? (4) how will the transfer be paid for; e.g., cash, owner life insurance, or bank loan? (5) will the agreement be enforceable before the courts and IRS?