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Buy–sell Agreement
A buy–sell agreement, also known as a buyout agreement, is a legally binding agreement between co-owners of a business that governs the situation if a co-owner dies or is otherwise forced to leave the business, or chooses to leave the business. It may be thought of as a sort of premarital agreement between business partners/shareholders or is sometimes called a "business will". An insured buy–sell agreement (triggered buyout is funded with life insurance on the participating owners' lives) is often recommended by business-succession specialists and financial planners to ensure that the buy–sell arrangement is well-funded and to guarantee that there will be money when the buy–sell event is triggered. Clauses A buy–sell agreement consists of several legally binding clauses in a business partnership or operating agreement or a separate, freestanding agreement, and controls the following business decisions: *Who can buy a departing partner's or shareholder's share of the bus ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Buyout
In finance, a buyout is an investment transaction by which the ownership equity, or a controlling interest of a company, or a majority share of the capital stock of the company is acquired. The acquirer thereby "buys out" the present equity holders of the target company. A buyout will often include the purchasing of the target company's outstanding debt, which is referred to as "assumed debt" by the purchaser. It is usually synonymous with " acquisition". Non-finance usage The term may apply more generally to the purchase by one party of all of the rights of another party with respect to an ongoing transaction between the two. For example: *An employer may "buy out" an employee's contract by making a single prepayment, so as to have no ongoing obligation to employ the person; *A landlord may buy out the remainder of a tenant's lease, effectively paying them to vacate. *A government may buy out homes in a floodplain or other area subject to hazard. The language used by FEMA, a Uni ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |