Baker & Taylor
Provides advice and legal forms for creating a business buyout agreement, detailing when co-owners can sell interests, who can buy into the business, and how much departing owners can ask for their shares.Book News
Buyout agreements should be part of the initial documents when people start a company together, say Laurence and Mancuso, because it sets out in advance the rights of each owner if someone wants or needs to leave the business. Among the matters they discuss are when and how to allow an owner to request a buyout, when a buyout should be required, how to restrict who can buy into the company, how to value the business and each owner's share, how to set up payment terms to make future buyouts affordable, and how to provide the funds for future buyouts. Annotation ©2016 Ringgold, Inc., Portland, OR (protoview.com)Ingram Publishing ServicesHead off disagreements with departing co-owners
It happens to any business that’s owned by more than one person: Sooner or later, one or more owners will want or need to leave the business. What will happen to your company if one co-owner wants to retire, files for bankruptcy, or goes through a divorce? Unless you plan in advance, it could threaten the survival of your business.
In short, it’s essential that you create a simple but effective “prenuptial agreement” for your company with a buyout agreement (buy-sell agreement). This document clarifies:
Business Buyout Agreements
- when co-owners can sell their interests
- the circumstances requiring an owner to sell (personal bankruptcy, for example)
- who can buy into the business
- how much departing owners can ask for their shares, and
- how long continuing owners have to pay the former owner.
walks you through the creation of your own legal agreement—before issues come up and cause problems. It provides all the tax and legal information you need at every step, such as how to structure the agreement to avoid estate taxes. You’ll have a clear, fair agreement—and peace of mind.
This is the only book that helps business owners create a buyout plan, or "buy-sell" agreement, which is like a prenuptial agreement for business owners. Without one, one owner can bankrupt or ruin the company. A fill-in agreement is provided with the book.