Business Valuation Articles
The Importance of a Buy-Sell Agreement for Business Co-Owners
Posted by Benjamin Schuver on July 15, 2024
A buy-sell agreement is essential for businesses with co-owners, as it provides financial protection, ensures ownership stability, and helps avoid IRS complications. This agreement outlines how a co-owner's share will be handled in case of events like death or disability, often funded through life insurance to facilitate the buyout process. Properly drafted agreements safeguard the interests of all parties involved and ensure smooth transitions.