Buy/Sell Agreement

A Business Succession Agreement (also known as a buy/sell agreement) is a tool used by businesses to ensure that there is a clear and defined understanding of what is to happen to a party’s interest in the business in the event of the occurrence of prescribed events. Some of the most common events that a Business Succession Agreement deals with include:

• When a party to a business wants to retire or is unable to work due to long term illness;
• When a party to a business is getting divorced;
• When a party to a business becomes bankrupt;
• When a party to a business dies or loses capacity.

Without a Business Succession Agreement, if any of those scenarios eventuate, then business partners are often left arguing over how things should be handled, what value a party should receive for their share in the business and when payments should be made.

We find that by having a Business Succession Agreement in place whilst all parties are amicable, the chance of expensive and drawn out disputes in the event that a prescribed event occurs is significantly reduced. This not only provides the business with a plan for the future, but means that the business can be properly protected from damaging disputes.

The below fixed fee does not include:

• more than 1 hour of legal advice (whether in person, by telephone or by email);
• substantial amendments; or
• time spent by us with your other advisers.

The above does not constitute legal advice; it is generic information only. This document requires legal, accounting and financial planning advice.