Entrepreneur Information: Buy-Sell Agreement Details

When it comes to entrepreneur information, one of the most important things that you can learn about is the buy-sell agreement. Here are a few things to consider about the details of buy-sell agreements.

Purchase Price

One of the most important details of the buy-sell agreement is the purchase price. You need to determine how much each portion of ownership in the business is worth. If you are going to be selling a portion of the business to another owner, you need to agree on the purchase price ahead of time. This way, there is no negotiating to be done when it is time to sell the ownership.

When It Will Sell

You also need to determine what situations could trigger a sale. For example, many buy-sell agreements cover what would happen if one of the partners in the business died unexpectedly. However, you should also cover what will happen if one of the partners in the business wants to leave. 

Cash

If you are one of the business partners, you also need to determine how the cash will be generated for the purchase. Many times, partners will take out life insurance policies on each other so that the survivor(s) will have cash available if a partner passes away.

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