Buy and Sell Agreements: What Are They and How Do They Work?

Buy and Sell Agreements: What Are They and How Do They Work?

If you’ve built up your business with a partner, you’ll know how much you both contribute to the successful running of your company. You’ll also know that losing your partner would have colossal consequences and cause huge problems. It’s natural to want to avoid the thought of your partner falling sick or being hurt, but it’s always wise to prepare for the unexpected – buy and sell agreements will give you one less thing to worry about in the case of a tragedy. Buy and Sell Agreements: What Are They and How Do They Work?

Buy and sell agreements protect you from the financial impact of the loss of a partner. If your partner becomes seriously ill or dies, a buy and sell agreement will promptly provide you with a lump sum of money. This will mean that you can buy their share of their business, and ensure fair compensation to your partner’s family.

This legally binding agreement will mean that there is no confusion if the worst happens, providing clarity in a time of distress. It will ensure that your business is able to continue, rather than being put on hold and losing money, or closing permanently. You and your business partner can customise your policy to suit your needs – our experienced brokers will help you decide what cover you need and get the best solution.

A buy and sell agreement will give you immediate funds, so you can buy your partner’s share of the company. With the agreement, you won’t have to go to the bank for an expensive loan, or depend on unwilling investors or family members. A buy and sell assurance policy will help take the pain out of running your business during a crisis, and will provide for your partner’s family too.

Both you and your partner should take out a buy and sell agreement for each other, so you are both protected. This reciprocation will echo the running of your business; creating a fair and equitable solution for you both. You can set the terms for your policy, including retirement, disability, death, or change of ownership shares – one of our brokers will be able to talk you through the possibilities, and make sure you’re absolutely happy.

You can even combine your buy and sell agreement with another policy, such as Key Person Insurance (find out more key-person-insurance, or extend your base policies with a buy and sell agreement. Speak to one of our advisors to discover more about your insurance options.

It’s time to future-proof your business. Get peace of mind now – call our expert brokers at 087 724 9390

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