When forming and running a business, one of the key considerations is who your fellow owner(s) will be. A buy-sell agreement helps ensure that all owners have control over who they will be in business with. A buy-sell agreement can be put in place either at formation of a company or with agreement with all or some of the shareholders during the life of the company.
Some things your should consider when developing a buy-sell agreement include:
- Who can purchase shares of the company?
- How will a purchase price will be determined?
- How will the purchase price be paid?
- What events will trigger a mandatory purchase of shares?
- How will the company and shareholders handle a shareholder's diability, death or temination of employment?
Drafting a buy-sell agreement that is appropriate for your business requires the knowledge and experience of MMR attorneys who have drafted buy-sell agreements for companies of all sizes and have the knowledge to address your unique situation. Contact us to discuss options for a buy-sell agreement that makes sense for your company and shareholders.