What is a Buy/Sell Agreement
Life Insurance Disability Insurance Business OwnersTranscript
A lot of my clients are business owners.
Many times, they have one or more business partners. In those cases, a buy-sell agreement is highly recommended.
A buy-sell agreement is a contract drafted by an attorney.
What a buy-sell agreement does is it protects the business in the event that one of the partners gets sick, hurt, or passes away.
For example, if one of the partners passes away, the remaining partners will likely want to buy back that deceased partner’s portion of the company.
The reality is, the company might not have the capital or may not want to use the capital to exercise the buy-out.
That’s where I come in. I help you secure that the business or the partners have enough liquidity to exercise the buy-out in the case of any triggering event.