You Have a Buy-Sell Agreement, Now What???
Do you have a buy-sell agreement? Do you know how you would actually buy the interest in the company should one of the other owners depart? Today’s client alert is to remind you that merely having a buy-sell agreement is not enough.
In most buy-sell agreements, should a member choose to depart (or depart due to circumstances beyond their control), the member has to offer his/her ownership interest in the company to the company or other owners of the company. This appears to solve the problem, right? Unfortunately, without a properly funded buy-sell agreement, the company or other owners may not be able to pay the departing owner for his/her interest, ...Read More