Buy Sell Agreements There are many different issues related to Buy/Sell Agreements. Most of the time, when we’re engaged to do that kind of an appraisal, it would have something to do with cross purchase agreement or an insurance funding agreement within the corporation. In other situations, if one of the partners or shareholders were to die we would be charged with establishing the value of their part of the company. This is also done to make sure a business has enough insurance. Often referred as Keyman Insurance, it makes sure that if that person wasn’t able to complete his or her duties in full or if he or she were to pass away, the corporation would be paid by the insurance company based on the set value. The insurance company will require a professional or a certified appraisal in order to write this type of insurance policy. A buy/sell agreement can also be as simple as calling us up and sayinh “I found what I feel is a great business that I’d like to buy and I’d like to have you help me establish a value for it”. In this situation, we will represent the interest of the buyer by preparing an evaluation, in addition to generating an Offer to Purchase and/or a Buy/Sell Agreement. |
