Buy/Sell Business Succession Agreements

What is a Buy / Sell Business Succession Agreement?

A Buy / Sell Business Succession Agreement (Agreement) is a legally binding agreement between business partners and / or shareholders.

The Agreement sets out procedure and mechanisms to deal with important events in the face of a co-director or shareholder leaving, suffering a serious accident or illness or passing away.

The Agreement considers:
Insurance
Valuation
Indemnity

What are the benefits of having a Buy / Sell Business Succession Agreement?

The uncertainty of the economic climate renders protection of your business a necessity. An Agreement plans for the continued smooth running of your business in the face of events foreshadowed.

The Agreement may deal with insurance and the payment of insurance premiums, meaning that if a co-director passes away there exists insurance for the remaining directors to purchase the share of the business.

In the event of purchasing a co-directors share, the Agreement can outline a valuation process to obtain true value. This can avoid disputes, aid continued smooth running of the business.

The Agreement may also address issues of indemnity, that is, whether the remaining directors must indemnify the departing director or shareholder.

Buy / Sell Business Succession Agreements at GJA Law

At GJA Law we understand all the events that can occur, and can create an Agreement that is tailored to suit the specific dynamics of your business.

You can protect the assets and energy you put into the business with a properly constructed, personalised Buy /Sell Business Succession Agreement from GJA Law.

Contact us today to arrange an appointment