Business Valuations for Buy-Sell Agreements

Overview

Many companies with two or more owners enter into legally binding buy-sell agreements. The buy-sell agreements provide direction upon certain voluntary and involuntary circumstances such as termination of employment, retirement, disability or death of one of the shareholders.  The agreement establishes the value that one partner would pay another (or to their heirs in the event of death) to buyout the partners share of the business.  

Clients and their attorneys frequently rely on Sun Business Valuations to establish fair valuation of the business (Certificate of Value) in connection with the Buy/Sell agreement.  Integrating a business valuation into a buy-sell agreement is critical to ensure that all shareholders are treated fairly and equitably in the event of a triggering event.  Sun will also provide insight as to the applicability lack of control or marketability discounts.

Annual Valuation Updates

Buy-Sell agreements should be accompanied by a regularly updated Certificate of Value that is supported by a third party accredited business valuation.  Sun Business Valuations is the named appraiser in numerous buy-sell agreements.  Appraisals are generally updated on an annual basis to ensure that the business valuation remains current. Sun Business Valuations provides Valuation updates at a significantly reduced cost from the initial valuation.

What's your company worth?

Please contact us to discuss your business valuation needs. Call (800) 232-0180

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