Agreement To Buy Sell
Sometimes buy-sell agreements only require evaluations after the triggering event has occurred. for example: « When a triggering event occurs, both parties call in an expert to evaluate the participation of the owner who sells his stake. If the valuations are 10% of the other, the values are average, and this average is the transaction price at which the interest is bought. If both valuations are outside of 10% of the value of the other, a third appraiser is selected and this valuation is used to determine the value of the transaction. « In such a case, the third expert can help determine the final value, but sometimes these situations end in court because one of the parties feels betrayed. Purchase and sale contracts aim to help partners deal with potentially difficult situations in a way that protects the business and its own personal and family interests. As mentioned above, buy-sell agreements usually contain a valuation clause with the terms of the buyout and often a definition of value. . . .