Wait and See Buy Sell Agreement

The agreement establishes a series of options usually starting with an option for the business to purchase the interest.

If the business doesn’t make the purchase then the cross-purchase option is triggered.

Many agreements have additional options triggered if the cross- purchase option is not exercised.

Once you determine which agreement is best for your business, your attorney will draft the agreement.

The agreement will spell out all of the details with some of the key areas being:

• The trigger events (death, disability, retirement, termination, divorce, bankruptcy)
• Who will purchase the interest (the business, co-owners, key people, third parties)
• The value of the business (set price, formula)
• How the price will be paid