A well-prepared Buy-Sell agreement is essentially a road map for the orderly transfer of a departing owner’s interests in a business. It governs who, when and under what terms the ownership interests can be transferred and is a critical tool for business succession planning.
As part of the Comerica Wealth Management webcast series, Tom Seck, National Director - Business Owner Advisory Group, addresses Buy-Sell Agreements and the importance of implementing one now, before the actual event arises
Why A Buy-Sell Agreement?
- To prevent/reduce chaos with the loss of a critical member of an ownership team or the introductions of an incompatible new owner.
- To address issues a sole business owner may have if some children are active in the business and others are not.
- To establish a transferring owner's interest for estate and income tax purposes.