Business Partnerships
Business Partnerships
A buy and sell agreement will ensure a seamless transition of ownership and protect the financial future of the business, while your partner’s family receives an agreed price for their business interest.
A buy and sell agreement is a legal and binding agreement between business owners, that allows for the purchase of the disabled or deceased owner’s share through a life assurance contract.
A buy and sell ensures:
- The interests and rights of every owner in the business have been properly specified and the value determined.
- The remaining business owners are financially able to retain control of the business.
- The business remains a going concern.
- No estate duty and capital gains tax will be levied on the proceeds form the life insurance contract, provided all necessary legal requirements are met.
If you do not plan properly, your disability or death may result in the liquidation of the business, outside partied buying in, or your family members may have to become actively involved in the business. By using a buy and sell agreement, funds are available to assist with a smooth transition in the business.
Every business should have a plan to deal with the loss of any of it’s owners.
“A Buy and Sell Agreement will make it easier to sleep at night!!”
Shirley Brewer
