Perhaps you can relate to this scenario: An attorney drafts a document and little or no review by shareholders is done; maybe it gets signed; and then it gets filed until … a partner quits, someone is fired, a partner becomes disabled, a death or divorce occurs, there is a bankruptcy filing, or someone retires.
Buy-sell agreements are agreements by and between shareholders or partners of a privately held business that govern transfers of equity, valuation, and related steps. Buy-sell agreements are critical to the ultimate ownership succession of an entity. These agreements are generally entered into at the inception of the company or when new investors buy into an existing company.
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