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Law & Accounting Offices of Stanley F. Bronstein
Scottsdale, AZ 85260
Phone: (480) 797-5547

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A Buy-Sell agreement is a written agreement between two or more owners of a business that provides a mechanism to prevent disputes BEFORE they occur.

Some critical issues that should be addressed in a Buy-Sell agreement are:

  • Should the agreement apply to all owners of the business, present and future ?
  • Does the agreement require someone to buy out the other, or does it simply provide an option right, or a right of first refusal?
  • What happens upon the death or disability of an owner?
  • How will a buyout price be determined?
  • Is life insurance required or recommended to fund the possible future buyout?
  • Should there be a covenant not to compete in the agreement?

The time to prepare a Buy-Sell agreement is before something happens.  This will make transitions much easier on you, your family members and your business partners by helping to prevent problems in the future.

 
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