Essay: Buy-Sell Agreement between Shareholders

Sample Essay

[Student Name]

[Address]

November 4, 2009

Subject: Structure of Buy-Sell Agreement

Tanya Anderson

4100 E. 6th Street,

Tucson, AZ 85711

 

This is in reply to your query regarding a best strategy to structure a buy-sell agreement in the event of retirement or death of one of the shareholders of Lavender Corporation. The best strategy for an agreement between shareholders of your company requiring a retired or deceased shareholder to sell his or her share to the continuing shareholder is described here (Hoffman, Raabe and Smith). As both of the shareholders also have concerns over funding the financing element is also implemented in the agreement.

The best form of agreement under the given circumstances is a funded business will as both of you do not want to transfer the shares of the company to outside individuals if any one of you dies or retires from the company. The funded business-will entails that the shares will be sold to a specific party on a fixed price mentioned in the agreement. The buy-sell agreement is quite easy to implement and is quite economical as it can be financed through a life insurance plan, savings plans and instalment sales. A funded buy-sell agreement usually includes clauses of objectives, buy-sell promise, clause for agreed price and clauses for financing of the buy-sell agreement.

Kindly order term papers, essays, research papers, dissertations, thesis, book reports from the order page.