You’ve worked hard to build a successful business. That’s why it’s important to protect that hard work with business succession planning from Comerica Insurance Services, Inc. Our insurance advisors will work with you and your legal and tax advisors to assess your business and create a customized plan that covers your business and your family in the event of your death or disability. With a properly structured and funded buy-sell agreement, you can establish the transition of ownership of your company and help protect your family’s financial future and the future of your business.
Understanding buy-sell agreements
A buy-sell agreement is a contract among business owners that governs the transfer of interests in the business among the parties to the contract. When there is a loss of an owner, the business interest is transferred as per the terms of the buy-sell agreement for a pre-determined price.
Generally, a properly structured buy-sell agreement might allow your heirs to
- Be free of business operating worries
- Avoid some of the delays associated with probate
- Be relieved of successor management issues (which could devalue the business)
Generally, surviving owners might
- Not have to deal with new (and possibly unwanted) partners
- Know the predetermined purchase price of the business
- Remain in good standing with clients and creditors through a smooth transition of ownership
- Receive significant capital gains tax reductions through properly designed and life-insurance-funded buy-sell agreements
- Be able to eliminate significant amounts of corporate debt by utilizing a buy-sell agreement
For more information, call 800.713.0336.