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 upon the death or withdrawal of an owner.
A properly structured buy-sell agreement can also mean the remaining owners 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
For more information, call 800.713.0336.
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Comerica Bank and its affiliates do not provide tax or legal advice. Please consult with your tax and legal advisors regarding your specific situation.