An agreement among owners in a business which states the under certain conditions, i.e., disability or death, the person leaving the business or in case of death, his heirs are legally obligated to sell their interest to the remaining owners, and the remaining owners are legally obligated to buy at a price fixed in the Buy-Sell agreement. The funding vehicles are either disability or life insurance or both.
An agreement used by businesses to sell the interests of a deceased owner to the remaining partners at a predetermined price or using a predetermined formula.
an arrangement which provides for the disposition of a business owner's share of the business at the time of his or her death or disability; for example, the agreement may provide that the remaining owners will purchase a deceased or disabled owner's interest at an agreed-upon price and that the deceased owner's estate, or the disabled owner, is obligated to sell the interest at that price
An agreement between the owners of a business that provides that the shares owned by any one of them who dies shall be sold to and will be purchased by the surviving co-owners or by the business at a value or formula previously agreed upon by the parties and stipulated in the agreement. Also applies to buyout arrangements between owners and key employees.
an agreement between partners that gives either party the right to offer to buy all of the other party's shares in the event of death, retirement, or a disagreement.
a binding contract between the co-owners of a business
a binding contract -- between you and your co-owners -- that controls when an owner can sell his interest, who can buy an owner's interest, and what price will be paid for that interest
a contract among business owners
a contracted agreement between the owners of the business, intended to protect the business
a contract that binds the surviving owners to purchase the business interest of a deceased owner at a pre-arranged price, as well as binding the estate of the deceased owner to sell at that same price
a critical component of your business plan
a formalized business continuation plan that
a legal agreement between shareholders or business owners that provides for a smooth transfer of ownership should a partner become disabled or critically ill, retire or die
a legal document, drafted by an attorney, to provide for the smooth succession of your business upon the occurrence of a specified event
a legally binding contract that requires the sale and purchase of ownership interests in the event of the death, disability, or retirement of a partner or shareholder
a legally enforceable written arrangement among the owners of a closely-held business that typically provides for the transfer of ownership and/ or control as a result of the occurrence of certain events involving an owner
a must for any partner or shareholder in a private company
a must in any company with more than one shareholder or partner
an agreement between owners to buy out a deceased owner's share of the business in the event of the co-owner's retirement, disability or death
an arrangement for the disposition of a business interest in the event that one of the owners should die , become disabled , retire or decide to leave the business
an arrangement or contract between family business shareholders or beneficiaries that specifies certain ownership rights among owners of family business shares or partnership interests
an arrangement that anticipates that one or more partners ultimately will leave the business
a powerful tool to help business owners control the
a separate agreement or clause within the larger partnership agreement that details how the individual partners will deal with the death or disability of the other partner
a useful way for individuals, who together control the shares of an incorporated company, to agree in advance how the shares will be dealt with in the event one of the shareholders wishes to withdraw from the corporation or dies
a valuable business planning tool
a written agreement that sets out the steps to be taken with the shares of the company or the interest in the partnership when certain events happen
See Shareholder's Agreement
An agreement for transfer (sale) of business ownership to the remaining owner(s) (partners) at the death of an owner. The remaining owner(s) purchase the business interest of the deceased owner. The purchase is often funded with the proceeds of life insurance policies, carried in equal amounts on the lives of each individual owner.
An agreement between an interim lender and a permanent lender under which the, loan made by: the interim may be acquired by the permanent lender.
An agreement among owners in a business which states that a deceased ownerâ€(tm)s interest in a business will be sold at a predetermined price. The remaining owners are legally obligated to buy at a price fixed in the Buy-Sell agreement. May also include an ownerâ€(tm)s disability. The funding vehicles are either disability or life insurance policies or a combination of both.
Buy-sell agreements are two-pronged arrangements negotiated between the entrepreneur and the venture capitalist wherein the former agrees to buy out the latter's stake or vice versa.
An agreement between the stockholders that states when and how shares can be transferred or sold.
An agreement between owners of a business stipulating when and how the owner's interest will be sold to a pre-specified party under a pre-determined pricing formula.
A legal contract in which one party agrees to sell, and the other agrees to buy, an interest in a business upon the occurrence of specified events.
A legal document that details the provisions under which a business may be sold.
An agreement entered into by the owners of a business to purchase the share of a disabled or deceased owner. The value of each owner's share of the business and the exact terms of the purchase and sale are stipulated in this agreement. return
An agreement among business partners that specifies how shares in the business are to be transferred in the case of a co-owner's death.
An agreement made by the owners of a business to purchase the share of a disabled or deceased owner. The value of each owner's share of the business and the exact terms of the buying and selling process are established before death or the onset of a disability.
a pact among partners or stockholders under which some agree to buy the interests of others upon some event.
AN AGREEMENT FUNDED BY A LIFE INSURANCE POLICY AMONG PARTNERS OF A BUSINESS WHICH SAYS THAT UNDER STATED CONDITIONS (DISABILITY OR DEATH) THE PERSON WITHDRAWING FROM THE BUSINESS OR HIS HEIRS ARE LEGALLY OBLIGATED TO SELL THEIR INTEREST TO THE REMAINING PART-OWNERS AND THEM IN TURN ARE OBLIGATED TO BUY AT AN AGREED FIXED PRICE STATED IN THE AGREEMENT.
An agreement among part-owners of a business that says that under conditions stated in the agreement, death or disability, the person withdrawing themselves from the business or his or her heirs are legally obligated to sell their part of the business to the remaining part-owners, and the remaining part-owners are legally obligated to purchase at a price agreed on. It can also be a similar agreement between an owner or part-owner of a business and a key person or employee.
A pact between partners in a business or shareholders in a company, obliging one to buy the other's interest (and obliging the other to sell) upon the occurrence of some event stated in the agreement.
A buy-sell agreement is an arrangement between two or more parties that obligates one party to buy the business and another party to sell the business upon the death, disability, or retirement of one of the owners.
An agreement, either as a stand alone document or as part of another document (e.g. an Operating Agreement), whereby stockholders/members set forth in advance the conditions and terms that will govern the sale of a stockholder's/member's ownership interest. Can be used for any number of situations, including restricting who the ownership interest can be transferred to, giving the business a first right to purchase and setting the sale price in advance.
(1) An agreement among part-owners of a business which says that under stated conditions, i.e., disability or death, the person withdrawing from the business or his heirs are legally obligated to sell their interest to the remaining part-owners, and the remaining part-owners are legally obligated to buy at a price fixed in the agreement; (2) a similar agreement between an owner or part-owner of a business and a nonowner, such as a key employee.
A contract binding the owner of a business interest to sell the business interest for a specified or determinable price at his or her death or disability and a designated purchaser to buy at that time. ancelable: A contract in which the insurance company reserves the right to terminate the coverage at any time (and perhaps for any reason) during the term of coverage by providing notice to the insured.
Signed agreement whereby a buyer advances earnest money to purchase property at a seller stated amount.
A contractual agreement among partners or shareholders of a business that specifies the terms for buying out one partner's or shareholder's share upon his retirement, death, or disability.
Buy-sell Agreement is an agreement designed to address situations in which one or more of the entrepreneurs wants to sell their interest in the venture.
An agreement in which one party agrees to purchase the financial interest that a second party has in a business following the second party's death, and (2) the second party agrees to direct his estate to sell his interest in the business to the purchasing party.
A legal document between a buyer and seller detailing the specifics for the selling of a business.
A written agreement between a homeowner/borrower, a construction lender and a permanent lender that assigns the mortgage to the permanent lender when the construction is completed. Also called a tri-party agreement.
An agreement for transfer (sale) of business ownership to the remaining owners (partners/stockholders, etc.) at the death or retirement of an owner. The transaction may be funded through a life insurance policy, typically carried on the lives of each individual owner.
A written, legal buy-sell agreement provides for the purchase of all outstanding shares of an owner who wishes to sell, terminate involvement, is permanently disabled, or dies. Such an agreement allows for different future ownership structure. The agreement is usually funded with life and disability insurance, and contains specific purchase arrangements.
A Buy-sell agreement is an agreement between two parties in which the two agree to exchange goods or services. The agreement is often recorded to use as proof in case of a legal disputes. It is a record of the terms of a trade.