Owners of closely held businesses always want to control the dispersion of the ownership interests of their businesses. For this reason, contractual agreements are often made restricting the transfer of ownership of the business – buying or selling – as well as establishing methodologies for valuing those ownership interests. These contractual agreements are called buy-sell agreements.
A buy-sell agreement is a contractual agreement that not only restricts the transfer of ownership of a business but also establishes methodologies for valuing those ownership assets.
Whether the business is a formal partnership or corporation, situations frequently arise where one owner will need to sell his or her ownership interest. Sales of ownership interests are common not only in goods-producing businesses but also in service-producing businesses, such as medical or legal practices. A buy-sell agreement sets forth the terms for all future purchases and sales of ownership of the business.
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The Nuts &Bolts of A Buy-Sell Agreement - Business 2 Community:
For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at info@buysellflbiz.com or 239.738.6227. Also, visit our Florida Business Exchange website at www.fbxbrokers.com and my personal website at www.buysellflbiz.com.
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