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More Ways a Buy-Sell Agreement Will Help Buy Out a Partner
Suppose that Steve decides that after years of hard work and dedication, he wants to retire so that he can travel the world while he’s still fit. Leonard plans to stay at the sandwich shop and actively continue to run the business.
When you don’t have any partners in owning your business, it’s far less complicated to shut down or sell off the business if you’re ready to move on to something else. However, for businesses with more than one co-owner, one of the most important agreements to establish early on is a buy-sell agreement. This outlines the protocol for what should happen if a partner wants out of the business for any reason, helping all parties to navigate these transitional periods. There are a number of reasons that an owner would no longer be able to participate in a company—these are often called “trigger events.” Here are some common trigger events that require businesses to call upon their buy-sell agreements, and how these events may wind up being handled.