Buy Sell Agreement
A Buy Sell Agreement is a legally binding contract that outlines the terms for transferring ownership of a business if a co-owner leaves due to retirement, death, disability, or other circumstances. It helps prevent disputes by setting clear guidelines for valuing and selling shares, ensuring business continuity. Such agreement can be structured as a cross-purchase or entity-purchase plan, depending on how ownership interests are being transferred.
Retainer Fee: $1500.00
Purpose of a Buy-Sell Agreement
- Provides a clear exit strategy for owners
- Can protect the business from unwanted third-party ownership
- Allows for business continuity
- Can establish a fair valuation process
Types of Buy-Sell Agreements
- Cross-Purchase Agreement – Co-owners buy the departing owner’s share
- Entity-Purchase (Stock Redemption) Agreement – The business itself buys the departing owner’s share
- Hybrid Agreement – Combines elements of both cross-purchase and entity-purchase agreements
Key Triggers for a Buy-Sell Agreement
- Death of an owner
- Disability or incapacity
- Retirement or voluntary exit
- Divorce (to prevent ownership transfer to a spouse)
- Bankruptcy or financial hardship
Services Offered by RELAWDOC
- Flat fee pricing for peace of mind with a clear, upfront cost
- Easy online ordering
- Simple information collection process
- Consultation to verify information and terms
- Drafting of the Affidavit of Death in compliance with legal requirements
- Review by an attorney
- Coordination of document execution and recording as requested (for additional fees)