Advantages to the Active Owners of Fully Funded
Buy-Sell Agreements
- Provides that the disabled owner's interest will be purchased at a specific price.
- Provides that the active owners will maintain control of the business.
- Helps maintain a smooth flow of business activity and builds goodwill and confidence among customers, creditors and employees.
- Prevents disruption of cash flow or drain on surplus since the buy-sell policy will provide funds for the purchase. There is not need to borrow or use the business's future income.
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