A buy-sell agreement can provide a mechanism for a business or one of its owners to acquire the interest of a partner or stockholder who withdraws from the business either voluntarily or involuntarily. The agreement may contain a designated price or a formula to use to determine the price. If so, the price or the formula needs to be updated periodically. Payment terms and conditions of sale are also generally provided. Clients and their attorneys frequently rely on Shilts CPA to assist them in drafting the proper wording to ensure that valuations are performed in accordance with the clients' wishes.
Shilts CPA can assist in making sure that the portion of the agreement regarding valuation is worded clearly so that the valuation process is without ambiguity. This will often involve establishing at least the following: