St. Cyr and Associates Financial planning

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FINANCIAL PLANNING - Business Planning

|Company RRSP/Pension| |Keyman Insurance|
|Buy/Sell (Shareholder Agreement)| |Executive Living Benefit|

BUY/SELL (SHAREHOLDER AGREEMENT)

What is a “Shareholders Agreement”?

A “Shareholders Agreement is an agreement between owners of a business stating exactly what they want to happen to their business interest during their lifetime and at death.

Events to Consider in a Buy-Sell Agreement

  • Death

  • Disability

  • Retirement

  • Personal bankruptcy

  • Marital breakdown

  • Dissension / dismissal as employee

Advantages of a Properly Funded Buy-Sell at Death of Owner

  • guarantees that the estate will sell

  • guarantees the surviving shareholder(s) will buy

  • establish method of determining price

  • provides cash to buy

  • avoids the problem of borrowing funds

  • keeps ownership in the hands of surviving owners

  • business operations continue without costly interruptions

  • assures the heirs of a fair price

  • assures heirs of prompt payment

  • provides heirs with an income producing asset

  • provides the necessary liquidity for taxes and settlement costs