- When was the agreement last reviewed?
- When was the business last valued?
- Has ownership changed?
- Has profitability changed?
- Has the business taken on significant debt?
- Are there new owners?
- Is an owner nearing retirement?
- What happens upon death?
- What happens upon disability?
- How is the purchase price determined?
- Who is obligated to purchase the interest?
- How will the purchase be funded?
- How much insurance exists?
- Who owns the insurance?
- Does current funding match the expected obligation?
Resource Center
Plain-English Tools for Buy-Sell Planning
Original guides and checklists for business owners and the attorneys, CPAs, and advisors who serve them.
When the agreement raises financial questions outside your scope, identify the appropriate specialist before the triggering event occurs.
Guide 05 · Interactive
The Buy-Sell Funding Gap Worksheet
Calculate the potential gap.
Estimated Interest Value: $4,000,000
Estimated Buyout Obligation
$4,000,000
minus
Available Funding
$1,750,000
equals
Potential Funding Gap
$2,250,000
This worksheet is intended for preliminary planning and does not constitute a formal business valuation, legal opinion, tax advice, insurance recommendation, or guarantee that financing will be available.
Before it is tested
Don't Wait for a Triggering Event to Find the Problem.
If your business has a buy-sell agreement, operating agreement, shareholder agreement, or partnership agreement containing buy-sell provisions, review the financial assumptions before they are tested.
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