NCBV NorCal Business Valuations
 
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Buy-Sell Agreements
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1.800.528.9246
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Click here to view the brochure.

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Don't Wait 'Til It's Too Late.

A Buy/Sell agreement is an agreement among business co-owners about how much one of the owners or his family will be compensated for his share of the business in the case of his death, disability, retirement, or some other future triggering event.

Do you have a Buy/Sell agreement? Does it really do what you think it does? How do you know?

For example, say you own an interest in a successful business.  Suddenly, you must sell out to your co-owners just as the business is completing its normal “down” cycle.  Surprise -- your 12-year old Buy/Sell agreement’s boilerplate valuation method excludes your most recent “up” cycle.  Result: you lose.  So, don’t discover your Buy/Sell Agreement after it blows up.  Instead, give it some respect.  Make sure it works to match your need for fairness and predictability with your business type, value drivers, and ownership model.

How Can NCBV Help?
  • Pre-formation consulting.
    NCBV objectively tests your draft or existing agreement under various performance scenarios.  We can help you and your attorney design an agreement that will work, be fair, use value drivers appropriate to your business, and be immune to wild interpretation.
    • Test your pending agreement before executing it.
    • Test your existing agreement before it triggers. 
    • Anticipate the unanticipated.
  • Triggered Valuation.
    When there is a triggering event under your existing agreement, NCBV will independently value the ownership interest based on the applicable Buy/Sell provisions and recognized modern valuation principles.
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Test Your Buy/Sell Agreement
If you have a co-owned business and your situation is similar to any of the following, you may need a Buy/Sell check-up:

  • What the heck is a Buy/Sell agreement?
  • Your Buy/Sell agreement is 3 or more years old.
  • You don’t have or don’t know whether there is a Buy/Sell agreement.
  • You or another co-owner want to retire or leave the business in a few years.
  • Your Buy/Sell agreement talks about "fair market value" but doesn't define it.
  • You have never tested your Buy/Sell agreement with real financials to see if or how it works.
  • There is a Buy/Sell agreement somewhere, but you are unsure whether it is funded.
  • There is a funding method in your Buy/Sell, but you’re unsure whether it is currently adequate.
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