A Buy / Sell Agreement is a legally binding contract usually between co-owners of a business that details the following:

1.    When an owner can sell their interest;
2.    To who the interest can be sold;
3.    The price the interest can be sold at;
4.    What event(s) will trigger the sale.

Buy / Sell Agreements are typically used to assist with the smooth transition of a business when there is a disruptive event. 

The disruptive event may include: death of an owner; severe illness of an owner; retirement of an owner.

The Buy / Sell Agreement will typically involve the use of a Put and Call option whereby:

1.    The owner leaving  the business has the right to put (sell) their share of the business to the remaining owner(s); and

2.    The remaining owner has the right to Call (buy) leaving owner’s shares.

This will be done for a predetermined price.

If you would like to discuss further please contact us:
McNamara and Co - Chartered Accountants, located minutes from the Melbourne CBD
www.mcnamaraandcompany.com.au/contact-us
Phone +61 3 9428 1062
Email admin@mcnamaraandco.com

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