Six Reasons Businesses Need Buy-Sell Agreement

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Six Reasons Businesses Need Buy-Sell Agreement

^{Published on 2025-03-29 15:01:43 - TheStreet}

Watch the video to learn six key reasons why every business owner should ensure they have a buy-sell agreement.

The article from TheStreet discusses the importance of a buy-sell agreement for businesses, particularly those with multiple owners or partners. It outlines six key reasons why such an agreement is crucial: 1) Ensuring Continuity - It provides a mechanism for the business to continue operating smoothly if an owner dies, becomes disabled, or decides to leave. 2) Valuation and Funding - It sets a predetermined method for valuing the business and funding the buyout, avoiding disputes or financial strain. 3) Preventing Unwanted Ownership - It prevents shares from passing to unintended parties like heirs who might not be interested or capable of running the business. 4) Tax Benefits - Properly structured agreements can offer tax advantages. 5) Conflict Resolution - It minimizes potential conflicts among remaining owners by having pre-agreed terms on how to handle ownership changes. 6) Peace of Mind - Knowing there's a plan in place provides security for all parties involved, reducing stress and uncertainty. The article emphasizes that without a buy-sell agreement, businesses risk significant disruption or even dissolution upon the exit of a key owner.

Read the Full TheStreet Article at:
[ https://www.thestreet.com/retirement-daily/video/six-reasons-businesses-need-buy-sell-agreement ]

N@N

Six Reasons Businesses Need Buy-Sell Agreement