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Protecting a Business' Future Ownership

If something happened to your business partner, would you want to buy their share in the business? 

 Protecting Future Ownership
Problems may arise when a principal’s interest in the business is left to his or her beneficiaries. These beneficiaries may have little or no skill – or no experience or desire – to contribute, or be compatible with the survivors. Of course, the surviving partner or shareholders may wish to purchase the business outright, but may have neither the cash nor the right to purchase at an agreed price.

Buy/Sell Agreement
A buy/sell agreement can give the surviving shareholder/s the right to purchase the deceased’s share in the business – and the deceased estate the right to sell – at a previously agreed price.

The main features of a buy/sell agreement:

  • provide the right and the cash for the surviving principals to purchase a deceased principal’s interest
  • can keep outsiders out of the business
  • can ensure the deceased principal’s beneficiaries receive a fair price promptly and in cash


     Like to know more?

  • Email us to schedule a contact time to discuss your business needs.
  • Call us on 13 1998 - 24 hours a day, 365 days a year.

Important information about advice
The advice on insurance and superannuation is provided by CommInsure and has been prepared without considering your objectives, financial situation or needs, you should, before acting on the advice, consider its appropriateness to your circumstances. View CommInsure's Financial Services Guide (PDF 33kb).   
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