Buy-Sell Agreements
Estate Planning - Business - Real Estate
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Buy & Sell Agreements

Despite their name, Buy-Sell Agreements have very little to do with actually purchasing or selling a business. While a section of the buy-sell agreement may address the purchase or sale of a business, the primary use of a buy-sell agreement is to provide a set of instructions on how a business may be transferred between co-owners or partners.

It may be easier to think of a buy-sell agreement as a buy out agreement between business owners. This business contract details the process an owner may take when "buying out" his/her business partner(s). A buy-sell agreement may be activated due to a wide range of circumstances, including, but not limited to:

  • Retirement planning
  • Death, divorce, or relocation of the partner/co-owner
  • An owner's desire to sell his/her share of the business
  • Incompetence or incapacitation of a partner/co-owner
  • Irreconcilable differences between partners/co-owners

A well written buy-sell agreement will detail how the transfer of the business will occur, including details such as:

  • Value of the share(s) of the business
  • Timeframe of the transfer
  • Potential funding options
  • Successors

An experienced business law attorney can also use a buy sell agreement to address other matters such as:

  • The effect of personal bankruptcy on the business
  • How personal lawsuits against an owner may affect the business
  • How a spouse or former spouse of an owner may seek ownership

Business law can be a complex and confusing area of law. It is imperative that you seek sound legal advice to avoid potential pitfalls when first forming a business.

We accept credit cards for your convenience. Contact our St Louis law firm today to schedule an appointment to learn how our legal expertise can help you acheive your goals. Attorney Chris Cox is conveniently located in Chesterfield, Missouri. Call us at 314.727.0163 or contact us online.

Disclaimer

The choice of a lawyer is an important decision and should not be based solely upon advertisements. The information and materials on this Web site are provided for general informational purposes only, and are not intended to be, and is not, legal advice. This Web site attempts to provide quality information, but the law changes frequently and varies from jurisdiction to jurisdiction. The information and materials provided are general in nature, and may not apply to a specific factual or legal circumstance.

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