Succession Planning
- Introduction to Succession Planning
- Succession Planning Challenges
- What Should a Succession Plan Include?
- Succession Planning Questions to Ask
- How is Succession Planning Related to Estate Planning?
- Systematic Gifting
- Passing on a Successful Business
- Will Your Successors be Ready?
- Selling the Business to a Family Member
- What is a Buy-Sell Agreement?
- Components of a Buy-Sell Agreement
- Setting a Price for a Buy-Sell Agreement
- Funding a Buy-Sell Agreement
- Cross-Purchase Agreements
- Stock Redemption Plans
- Other Types of Buy-Sell Structures
- Choosing the Right Funding Method
- GRAT or GRUT?
- Family Limited Partnerships
- Replacement Planning
- Other Considerations When Exiting a Business
Other Types of Buy-Sell Structures
You can structure your buy-sell agreement in different ways depending on your business structure and your own needs. For example:
- An entity-purchase buy-sell obligates the business to purchase the interests of each departing or deceased owner.
- A unilateral or one-way buy-sell is used in a sole proprietorship, for example, when you are the sole owner of a business and wish to sell it in its entirety to a family member or key employee.
- A wait-and-see buy-sell gives the business the first option to buy, and lets the remaining owners choose to buy if the business does not exercise the option to purchase.
Share Article:
Investment and insurance products and services are offered through Osaic Institutions. Member FINRA/SIPC. Marblehead Financial Services is a trade name of the Marblehead Bank. Osaic and the Marblehead Bank are not affiliated. Products and services made available through Osaic are not insured by the FDIC or any other agency of the United States and are not deposits or obligations of nor guaranteed or insured by any bank or bank affiliate. These products are subject to investment risk, including the possible loss of value.
Tools & Resources
