Buy/Sell Agreement Funding
A significant concern for business owners is how to buy out their Partner or other Shareholders should he or she pass away or become disabled. What if they can no longer contribute to the business? Where will the money come from to buy them out?
There are 3 components to a properly structured Buy Sell Agreement:
- The legal agreement itself
- Corporate restructure, if applicable
- The funding mechanism: where does the money come from?
As Risk Managers we deal with the Death or Disability of a Shareholder or Partner. We complete a full Financial Analysis to determine the best solution(s) to address this concern.