Shareholders Agreement
Eventually, every owner leaves his or her company. This happens as a result of retirement, death, disability, termination of employment, or, most commonly, disagreement over the future of the enterprise. In this case, the terminating shareholder wants to receive a fair amount for his stock and on terms that ensure quick payment. For the company and remaining shareholders, the purchase should not adversely impact its current strategies. In order to make an easy transition, a fair buy-sell agreement should be in place to help answer questions like:
- Should founders' shares vest over several years?
- What events trigger a possible buyout?
- What is the value of the business?
- How is the transaction executed?
Furthur Information
- Plan For Changes In Partnership Ownership With A Buy-Sell Agreement
- Buy-Sell Agreement Keeps Your Business Afloat
- Buy-Sell Agreement - Business Owner's Toolkit
- Buy-Sell Agreements For The Start-Up
- Succession Planning For Small Business
- Buy-Sell Links - Entreworld
- Entrepreneurial Deathtraps
- Family Business Articles - Complied By Farleigh Dickinson University
