An Alternative to a Buy-Sell Agreement by Julius Giarmarco, Esq.
An Alternative to a Buy-Sell Agreement
by: Julius Giarmarco, Esq.
The advantages of a buy-sell agreement are well known to owners of closely-held businesses and their advisors. First, a buy-sell agreement creates a "market" for what would otherwise be an unmarketable asset. Second, a buy-sell agreement assures that the financial security of the deceased or withdrawing owner's family will not be tied to the future success of the business. This is particularly important to the business owner who feels that the business will likely flounder in his/her absence. Third, the remaining owners do not want to be in business with a withdrawn, and now inactive, "partner" nor with a decease