Buy-Sell Agreements

Buyout Agreements for Co-Owners

When more than one person is going to be the owner of the business, then it must happen that one person is going to need to, want to or have to leave the business before the other. After all, what are the odds that when Jennifer and Jane form a business, that one fine morning Jennifer will come in to work and announce that she has decided to move on to other things and Jane replies that she too on her morning commute was just thinking of closing the business? Need we say more? One person is going to want to withdraw or retire, or die, or become ill or disabled, before the other(s). The time to address this is not then, when the owners’ interests have become completely at odds with each other, but at the beginning – when none of the owners know who will be on which side of the issue – so that a mechanism that is fair to both sides can be created – one that is fair to both the exiting party and the remaining party or parties.

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