Buy-Sell Agreements

Buy-sell agreements can be used as a succession planning tool that provides an exit strategy for owners and business continuity.  Agreements that use predetermined formulas to establish a transaction price are rarely a reasonable proxy for fair market value, since business and industry conditions can change over time.  In addition, formulas used in buy-sell agreements may not be accepted by the IRS as indicative of fair market.

It is becoming more common for buy-sell agreements to stipulate that transactions must occur at fair market value.  Other agreements with investors and creditors may
involve "triggering" events that also require a fair market value estimate.  

 

At FairValue Advisors, our appraisals are used to assist with the buy-out and buy-in pricing, as well as the potential obligations resulting from buy-out clauses and triggering events.
 

FairValue Advisors has the resources and expertise to address your valuation needs.

Valuation Projects

A defense contractor was appraised by FairValue Advisors for evaluation by a private equity firm.

April 18, 2019

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