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The Role of Buy-Sell Agreements In Family Business Succession

Coordinate the terms with the client’s estate-planning documents.

A properly drafted buy-sell agreement (buy-sell) is an important component of a successful family business succession plan. Its primary purpose is to provide for the stability and continuity of a family business in a time of transition (such as the death of a controlling shareholder) through the use of ownership transfer restrictions. Typically, such agreements prohibit the transfer of shares in the business to unwanted third parties by setting forth how, and to whom, shares may be

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