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)
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