A buy-and-sell agreement protects the business interests as a going concern if one owner becomes disabled or dies. This means that the surviving business owners, the employees, and all their dependents are protected from any disputes or claims arising from the disabled owner or the executor of a deceased owner’s estate.
Every jointly owned business needs a legally binding buy-and-sell agreement between the co-owners of the business to offer a smooth transfer of the business interests, should one owner die or become disabled.
What is it?
Why do you want it?
To protect yourself and your business if you have a co-ownership in place. It will provide the surviving owners with the cash to purchase the deceased or disabled owner’s share of the business.
This is brought into effect by a buy-and-sell agreement that each co-owner takes out life cover on the others’ lives. This cover will pay out in the event of death and can be used to purchase the deceased owner’s shares. Disability cover can be added for extra protection.
According to a buy and sell agreement, each co-owner takes out life cover on the others’ lives. This cover will pay out in the event of death and can be used to purchase the deceased owner’s shares. Disability cover can be added for extra protection.
Do you need it?
If you co-own a business, a buy-and-sell agreement is imperative to keep the co-owned business as a going concern after the demise of one owner.
How much does it cost?
The cost will depend on the cover you need.
How can we help you?
Contact attooh! to guide you through this process and find the best solution for you.