Buy and Sell Agreement

Buy and Sell Agreement in Brampton

A Buy and Sell Agreement is for any sole proprietorship, partnership, or any other closed organizations. It enables you to provide a pre-determined formula for your business’s future after your demise, disability or retirement. Co-owned businesses can be pre-planned to avoid any disagreement during separation or in the case of demise of one owner.

Buy and Sell Agreement is one of our expertized products and we can help you make a fair deal with our valuation methods. Serving thousands of clients in Brampton,Mississauga for the past 2 decades, we can assist you in designing a complete Buy and Sell Agreement which will be legally binding between the co-owners. An agreement that states if a part-owner of a business wishes to sell, he or she must sell to the other part-owners or another person named in the agreement. The price of the part of the business is also named in the agreement.

Why is a Buy and Sell Agreement Necessary for a Closed Business?

Every co-owned business needs a buy-sell, or buyout agreement the moment the business is formed. It is necessary to protect the business when a co-owner leaves. Buy and Sell Agreement provides security to the business, the continuing owner, as well as the leaving owner and his family. Buy and Sell Business helps in the following ways:

  • To Establish a Fair Price concerning all withdrawals and investments made by all members
  • To ensure availability of funds to the partner’s family in the case of death of the partner.
  • To prevent liquidity of the business in case of one partner’s bankruptcy.
  • Every business has its own dimension and its own working. A big company would want a more market-based, income-based or an asset-based operation, but other small companies and businesses would want to follow a customized method to value their assets. Through Buy and Sell Agreement they can have their own valuation pre-determined.
  • After any separation, there is always an emotional drift. It is better to develop an agreement before it is needed. Genuine conditions can be included having a fair deal on the table without much disagreement can be possible only before-hand.
  • A Buy and Sell Agreement enables a business to have pre-determined ground rules, according to which each partner can estimate how much his family will receive after his demise and accordingly plan other policies.

Call Harpreet puri to know more about the buy and sell agreement or visit our office at your Brampton Office.