You can structure your buy-sell agreement in different ways depending on your business structure and your own needs. For example:
- An entity-purchase buy-sell obligates the business to purchase the interests of each departing or deceased owner.
- A unilateral or one-way buy-sell is used in a sole proprietorship, for example, when you are the sole owner of a business and wish to sell it in its entirety to a family member or key employee.
- A wait-and-see buy-sell gives the business the first option to buy, and lets the remaining owners choose to buy if the business does not exercise the option to purchase.
First Commonwealth Bank and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.