Business Buyout Agreements: Plan Now for Retirement, Death, Divorce Or Owner Disagreements, 5th Edition

Table of Contents......Page 9
Your Legal Companion for Creating a Buyout Agreement......Page 13
What a Buy-Sell, or Buyout, Agreement Can Do......Page 20
When Should You Create a Buyout Agreement?......Page 28
Does Everyone Need a Buy-Sell Agreement?......Page 29
How to Create Your Agreement......Page 30
When to Seek a Lawyer’s Advice......Page 32
1. An Overview of Buyout Agreements......Page 17
2. Limiting the Transfer of Ownership Interests......Page 35
Transfers of Ownership Interests......Page 36
Using a Right of First Refusal......Page 37
Using Absolute Transfer Restrictions......Page 55
3. Providing the Right to Force Buyouts......Page 59
Changes in an Owner’s Circumstances......Page 60
If an Owner Retires or Stops Working......Page 64
If an Owner Becomes Disabled......Page 77
If an Owner Dies......Page 86
If an Owner Divorces......Page 100
If an Owner Loses a License......Page 105
If an Owner Files for Personal Bankruptcy......Page 108
If an Owner Defaults on a Personal Loan......Page 111
If an Owner Needs to Be Expelled......Page 116
4. Structuring Buyouts......Page 121
Company Versus Co-Owners as Buyers......Page 122
The “Wait and See” Approach Works......Page 127
5. Funding Buyouts......Page 145
Funding With Cash......Page 146
Buying Insurance......Page 147
Making Installment Payments......Page 161
6. How to Set the Buyout Price in Your Agreement......Page 163
Why Choose a Price in Advance?......Page 164
What Valuation Methods Are Based On......Page 166
How Our Valuation Provisions Work......Page 169
Agreeing on a Fixed Price (Valuation Method 1)......Page 171
Using a Buyout Formula......Page 176
7. Choosing Payment Terms for Buyouts......Page 199
Balancing the Interests of Buyer and Seller......Page 200
Lump-Sum Cash Payment......Page 202
Installment Plans......Page 203
Customized Schedule of Payment......Page 209
Creative Ways to Pay......Page 210
8. Completing and Updating Your Buyout Agreement......Page 213
Finalizing Your Buyout Agreement......Page 214
Resolving Buyout Disputes in the Future......Page 224
Binding Future Owners Under Your Buyout Agreement......Page 234
Updating Your Agreement......Page 235
9. Income and Estate Tax Issues......Page 239
Income Tax Issues......Page 240
Estate Tax Issues......Page 257
10. Lawyers, Tax Specialists, and Resources......Page 281
How to Find the Right Lawyer......Page 282
Finding the Right Tax Adviser......Page 287
Legal Resources......Page 288
Appendix A. How to Use the CD-ROM......Page 293
Installing the Files Onto Your Computer......Page 295
Using the Word Processing Files to Create Documents......Page 296
Forms From the CD-ROM......Page 299
Appendix B. Buyout Worksheet......Page 301
Appendix C. Buyout Agreement......Page 311
Web Resources......Page 0
Related Products......Page 351