buy-sell agreement


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buy-sell agreement

n. a contract among the owners of a business which provides terms for their purchase of a withdrawing partner's or stockholder's interest in the enterprise.

References in periodicals archive ?
Along the way, we learned some valuable lessons on what it takes to make a buy-sell agreement work, even under difficult conditions:
A buy-sell agreement can provide the remaining shareholders or co-owners with the option of purchasing the business interests of a deceased or withdrawing co-owner before the business interest is sold to a third party.
A buy-sell agreement and proper funding could have saved their business while providing needed income for Jeff's family after his death.
Businesses with more than one owner need a buy-sell agreement to provide both liquidity and an orderly ownership transition in the face of an owner departure, regardless of whether or not it was expected.
On June 1, 2014 NJSC Naftogaz of Ukraine has sent OJSC Gazprom a draft supplementary agreement to the January 19, 2009 buy-sell agreement for natural gas for the period from 2009 to 2019 between NJSC Naftogaz of Ukraine and OJSC Gazprom.
These risks should be addressed with a buy-sell agreement between you and a business partner, a key employee, or an outsider.
One common transaction is the distribution of business-owned policies to individual owners in order to fund a cross-purchase buy-sell agreement.
Commito first applauded a private letter ruling (PLR 201217017) of the IRS, which held that a buy-sell agreement among corporate shareholders, in combination with life insurance policies on the shareholders lives, but owned their closely hew corporation, satisfied the IRS' four notification and consent requirements respecting the policies' issuance.
One way to minimize chaos and control the order of events is to design and execute a buy-sell agreement.
The Solution: A buy-sell agreement spells out how ownership will change hands in case of an owner's death, disability or retirement.
In part, the risk of these claims can be minimized by a well-crafted buy-sell agreement signed by the equity owners.