Buy/Sell Agreements

A Buy/Sell agreement can protect one’s business or business investment. It can also make funds available after the departure of a principal and set a selling price upon an owner's disability, retirement or death that has been previously agreed upon and deemed fair to all parties. A Buy/Sell agreement also may set the valuation for estate tax purposes. This allows owners to plan their estates and mitigate the risk of expensive valuation disputes among the owners or upon an estate tax audit.

There are many ways to structure an effective buy/sell agreement to accomplish the goals of management.  Potentially significant problems can arise, however, if the proper wording (or lack thereof) is not clearly articulated in the agreement.

MHP is skilled at helping business owners establish equitable Buy/Sell agreements by determining the valuation of the business and reviewing the agreement for clarity and consistency. MHP is also able to accurately quantify any transfer related discounts that could arise from the execution of a Buy/Sell agreement.