Once the basic form is selected, the agreement can be modified in many different ways to meet the specific needs of the parties involved. An experienced advisor with a background in business continuation planning can be very helpful in evaluating the options and selecting the best option available.

Wayne W. Kollas Inc. is happy to work with you, your CPA, attorney or business advisors in developing plan for your business. We can also put together a team of experts if you prefer.

For more information on Buy Sell agreements, visit:
Buy Sell Agreement - The Basic Concepts.

Funding Buy Sell Agreements

Cross Purchase Agreements
Entity Purchase Agreement
No-Sell Agreements
Wait and See Purchase Agreements

Business Continuation Services

While each buy sell agreement is created to meet the needs of a specific situation, there are four basic forms that are typically used. Your professional advisors can assist you in selecting the right form based on your personal needs, the needs of your business and a complex array of legal and tax issues that will be specific to your situation. The basic structures include:

Cross Purchase Agreement: Remaining owners purchase the interest of the deceased or leaving owner. This approach may have tax advantages under certain circumstances, but may require more expense to individual owners. For more information click here.

Entity Purchase Agreement: The business purchase back ownership interest from the deceased or leaving owner. The business bears the expense and administration may be simplified. However, the results favor remaining owners and may be taxed less favorably. For more information click here.

No-sell Buy/Sell Agreement: This form allows remaining owners to retain control of the business and also allows the leaving owner or her heirs to benefit from the continued prosperity of the business. It also provides liquid funds to support the family and estate expenses. For more information click here.

Wait and See Purchase Agreement: This form offers a flexible alternative between the cross purchase and the entity purchase agreements. It allows the decision between the two to be made at the time the triggering event occurs. It can have a combination of the disadvantages of these two agreement forms. For more information click here.