Buy-Sell / Business Continuation Plans Part 1 of 5

ISR

The Basics of Buy-Sell / Business Continuation Planning

Part 1 of 5

A Buy-Sell / Business Continuation Sell agreement should be considered in every closely held business.

This agreement, or arrangement, defines the disposition of an owner’s interest in the business, yours or a partner’s, upon the specific triggering event such as a partner’s death, disability, retirement or other termination.  This is especially important when the owners want the business to stay with the remaining owners or family members and want a way to protect the business.

A well documented, and properly funded, agreement can protect the interests of all the owners and help maintain continuity of the business after the triggering event.

The agreement can take different forms, including
(1)   Entity purchase or stock redemption.
(2)   Cross purchase
(3)   Wait and see.

These three videos help introduce the importance of a Buy-Sell arrangement:


Link


Link


Link

NEXT:  The Benefits of a Buy-Sell / Business Continuation Agreement

Disclaimer: I do not provide tax, legal or accounting advice. I recommend qualified attorneys, accounting and funding professionals to assist in the formation, valuation and funding of your buy-sell / business continuation arrangement. 

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About Daniel G. Alcorn
My financial services career began in the late 70's in New Hampshire. My career path includes 19 years in Vermont where I served as Senior Vice President of the state's largest commercial bank. I relocated to New York's Capital Region in 2003 where I now enjoy helping individuals and families with their Life, Medicare and Long Term Care insurance decisions. Let's connect online at www.linkedin.com/in/dgalcorn and https://www.facebook.com/DGAlcorn.Associates/

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