Buy-Sell Agreements for Co-Owners
The plan for what happens to an owner's stake on death, exit, or a dispute.
What is a buy-sell agreement?
A buy-sell agreement is a contract among co-owners that sets in advance what happens to an owner's interest when a triggering event occurs — death, disability, retirement, divorce, a dispute, or a desire to exit. It answers the two hardest questions before they become emotional: who can buy the interest, and at what price.
What it controls
A good buy-sell defines the triggering events, who has the right or obligation to buy (the company, the other owners, or both), how the price or valuation method is set, and how the purchase is funded — often with insurance. That structure keeps a departure from destabilizing the business.
Why every co-owned business needs one
Without a buy-sell, a co-owner's death or exit can force the remaining owners into business with an unwanted party — an heir, an ex-spouse, or a creditor — or into a fight over value. It works hand in hand with the operating agreement or partnership agreement.
How Nochumson P.C. helps
Nochumson P.C. drafts buy-sell agreements and resolves owner exits for co-owned businesses. Contact us to protect your ownership.
Related articles:
- Partnership Agreements: Key Provisions
- LLC Operating Agreements: What to Include
- Dissolving a Business in Pennsylvania
- Asset vs. Stock Purchase in a Business Sale
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