wait and see buy sell agreement - Financial Planners, Articles and Q&A

Wait-and-See Buy-Sell Agreement

A wait-and-see buy-sell agreement is similar to a cross-purchase buy-sell agreement, except that it has more flexibility. With this method of a buy-sell agreement, the same sort of life insurance policies are purchased by each owner for every other owner of the company equal to their share of the organization. Wait-and-see refers to the options offered when an owner dies. Rather than a set distribution of the assets, the business entity and the individual owners have the choice whether to buy the newly available stake in the company. The price was set in the original agreement, and the company entity has the first choice to buy, and must buy any remaining stake if the individuals choose not to buy it.

Fast Facts

This method avoids costly purchase taxes with the use of life insurance policies.
These plans are sometimes too hard to arrange effectively for some businesses.

wait and see buy sell agreement - Financial Planners, Articles and Q&A

Search Results for "wait and see buy sell agreement"

Articles

Results 1-5 of 55 for "wait and see buy sell agreement"

How to Buy a Home

The purchase of a house is probably the single largest financial investment that a person undertakes in their ...
- Site: financialplannernetwork.com
- 2 of 3 user(s) found this useful
Stock Investments

What is a stock investment? Simply defined, a share of stock represents a share of ownership in a publicly-tr...
- Site: financialplannernetwork.com
Equity Securities Overview

Equity securities are shares of stock that represent a proportional share of ownership in a company's net asse...
- Site: financialplannernetwork.com
- 1 of 1 user(s) found this useful
Foreign Exchange Trading

Occasionally, changes in regulation open doors that give investors entirely new ways to make money. That is ce...
- Site: financialplannernetwork.com
- 1 of 1 user(s) found this useful
Financing A Home

Homeownership has always been an essential piece of every American dream. Even today amidst an overall reserv...
- Site: financialplannernetwork.com