Buying or Selling a Business
Buying or selling a business can be a complicated process. Let us give you a hand with these affordable template contracts, forms and checklists.
When you buy or sell a business, it's not just the employees, plant and inventory that gets transferred. It is also the customers, the goodwill, the brand, the corporate culture, and all the intangibles that form the relationship between the business and its community. Much of that culture has been developed and handed down by the originators of the business.
If you are the buyer, ask yourself if you will be able to maintain the relationships that the previous owner has formed, and continue to build the brand going forward. If you're the seller, how important is it to you that the culture, vision and goals of the business be preserved by the new owner?
Sole Proprietorship Buy-Sell Agreement
Succession planning is vital to the survival of small businesses. This Sole Proprietorship Buy-Sell Agreement can help ensure the continuity of yours.
What is succession planning?
Succession planning is a strategy to determine what will happen to your business when you retire, die, or become incapacitated. A succession plan sets out who will take over operating and managing the business, and how and when that transfer will take place.
Scope of the Buy-Sell Agreement
This is a simple form of buy-sell agreement between the owner of a sole proprietorship and an employee who wants to purchase the business when the owner dies. Both parties want the business to continue to exist.
Key Points of the Agreement
- On the death of the proprietor, the executor or administrator of the estate will formalize the sale of the business to the employee.
- The employee will finance the purchase through proceeds of a life insurance policy on the life of the proprietor.
- The purchase transaction will include all real property, accounts receivable and other assets owned by the business.
- The parties will jointly determine the value of the business at the end of each fiscal year.
Format and Jurisdiction
This is a downloadable MS Word template from MegaDox.com. It is fully editable and can be customized to fit your specific requirements.
The form is generic legal contract and does not contain specific references to the laws of any country. It can be used in most common law jurisdictions.
