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. the purchase, voluntarily or involuntarily, of an owner`s interest in the business due to a triggering event; limit owners to parties who want non-selling owners to have potential co-owners and business partners as potential co-owners; the provision of an agreed price at which the buyer and seller can transact before a conflict and distortions of valuation occur between the buyer and the seller; the provision of the agreed terms for the payment of the transaction price related to the sale; and additional owners binding on the provisions of the purchase-sale contract. In order to avoid internal conflicts and smooth transition in situations where one or all of the owners wish to leave the business, a good buy-sell contract may have one of the following provisions: the buy-sell agreement may take the form of a cross-sell plan or a buyback plan (company or share buyback). The service of a company agent is recommended for greater neutrality and efficiency of the purchase-sale agreement. The importance of plain language can be illustrated by an example from one of the authors` professional experiences: a buy-sell agreement between the owners of a holding company contained a clause stating in summary: “The auditor shall determine the fair value and the parties shall act on the basis of that value.
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