Exceeding Expectations. Always. — Business Advisors and CPAs

Buy-Sell Agreement

Your business is likely the most valuable asset you own. It likely takes the majority of your waking hours and is, in some ways, an evaluation of your life’s achievements. At BatesCarter, we want help you increase the current value of your business and help you convert that value into a comfortable retirement when the time comes. A buy-sell agreement is a very important tool for making that happen. A buy-sell not only helps to establish the price of the business but also how the price will be paid. The terms are just as important as the price. Once a "trigger event" occurs (retirement, termination, death, disability, sales, divorce, bankruptcy), a buy-sell agreement acts as a contractual agreement between the buyer, the business, and the owner of the business. It ultimately dictates how the future transaction will be facilitated based on the trigger event.

Understanding how buy-sell agreements work is important to both the business owner and the buyer. As a client of BatesCarter, we will help you understand the different types of buy-sell agreements such as fixed price, formula, independent valuation, earn-outs, among others and which type of contract is best for you and your business.

The accounting and business advisory professionals at BatesCarter will work with you to either develop or review your existing buy-sell agreement. We are fortunate to have highly skilled ABV (Accredited in Business Valuation) credentialed professionals at BatesCarter. Managing partner, Ron Bracewell, and Martha Cartee work closely in providing valuation and buy-sell agreement services to our clients. Many clients have found they don’t want to monetize their life’s work without BatesCarter’s sage valuation advice. Many have also found that getting their business ready to sell years ahead of their planned retirement can put substantially more money in their pocket and provide them with a healthier more sellable business. Those who want their children to assume control of their business have found that regular meetings with their BatesCarter advisors and their children not only serves to educate the next generation but also serves to remove the surprise element.

To learn more about our approach to buy-sell agreements or if you would like to learn more about other accounting and business advisory services we provide, please contact us today. We look forward to exceeding your expectations. Always.