Valuation Purposes

Buy-Sell: A buy-sell agreement can be between a company and a shareholder (this is the classic buy-sell agreement, also known as a redemption agreement) or between the shareholders of a company (a cross-purchase agreement).

Buy-sell agreements are essential because they provide employees or other current or prospective shareholders with a mechanism for buying or selling shares while allowing the company to control its ownership structure.

A key provision of any buy-sell agreement is the valuation provision. Many older buy-sell agreements relied on set formulas or rules of thumb that often produced inappropriate “values”. In order to ensure fairness to all parties, the newer buy-sell agreements typically stipulate that the value be based on an independent business valuation each year as well as at the time of any transactions.

Hogue Business Valuations LLC has extensive experience performing valuations for buy-sell agreements.

Buy-Sell Agreements | ESOP | Estate & Gift Tax | Fairness Opinions | Options Issuance
Marital Dissolution | Profit Sharing & 401(k)

Headquarters	West Coast Office
Hogue Business Valuations LLC 1 Wardrobe Road Hanover, New Hampshire 03755-4919 603 643-8990  Fax 603 643-8931	1110 Doyle Place Mountain View, California 94040 650-964-3722

© COPYRIGHT 2005 ALL RIGHT RESERVED HOGUEBUSINESSVALUATIONS.COM