Belleville: 618-234-9800 | Edwardsville: 618-656-2244 | ST. LOUIS: 314-421-2325

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Buy-Sell Agreements

In a business with multiple owners, two key planning considerations are who is allowed to own an interest in the business and who is allowed to participate in business operations. These concerns are often addressed in the form of a buy-sell agreement, also known as a cross purchase agreement, shareholder agreement or buyout agreement, among other names.

Buy-sell agreements contain important provisions that typically answer the following questions:

  • Who can purchase an ownership interest in the business?
  • Under what circumstances are owners allowed to sell or transfer their ownership interests?
  • What events, if any, will trigger a mandatory buyout of an owner’s interest?
  • If an owner dies, will the business buy out the deceased owner’s interest or allow the deceased owner’s successors to participate in the business?
  • In the event of a buyout, how will the purchase price be determined and how will that amount be paid?
  • What happens to an owner’s rights and interest in the business if the owner becomes disabled, resigns or is terminated?
  • Can an owner’s rights and/or interest in the business be transferred to the owner’s spouse in a divorce?

Buy-sell terms may be set out in a separate written agreement or included in certain organizational documents adopted by business owners, such as the operating agreement of a limited liability company. Whatever the format, it is important to have buy-sell terms in place that are appropriate for your business and address a variety of potential situations. MM&R’s experienced business attorneys have prepared buy-sell agreements for businesses of all sizes in a variety of industries.

To speak with an experienced business lawyer from Mathis, Marifian & Richter, Ltd., contact us today.

CONTACT

To discuss your legal needs, contact
the lawyers of Mathis, Marifian & Richter.

BELLEVILLE: 618-234-9800
EDWARDSVILLE: 618-656-2244
ST. LOUIS: 314-421-2325