An Insurance funded Buy/Sell Agreement is a means of creating cash exactly when required for the ongoing shareholder to purchase a deceased or seriously disabled shareholder’s interest in the business.
A Buy/Sell Agreement ensures that the cash is used as intended. The document can include an agreed price, or how the price is to be determined.
Shareholder/partnership protection is designed to provide a predictable outcome in the event of a crisis, and the smooth handover of control and ownership, on the death or disablement of a shareholder.
Control of the business is retained by those in the business and the family of the deceased/disabled are treated fairly.