Buy-Sell Agreements in M&A: Triggering Events, Valuation Methodology, Tax Implications, Funding Mechanisms

This CLE webinar will provide guidance to M&A counsel for drafting and negotiating buy-sell agreements that help facilitate the smooth transition of a business interest. The panel will discuss key considerations when crafting these agreements, including defining the events that trigger the sale or transfer of an interest in a business, how the purchase price will be determined, funding the buyout, how valuation will be determined for tax purposes, and more.

Buy-sell agreements can significantly impact mergers and acquisitions by ensuring a smooth transition of ownership interests, minimizing potential disputes among shareholders, and providing a clear process for buying out departing owners, which can facilitate the deal and protect the interests of all parties involved.

Negotiating and drafting buy-sell agreements involves complex issues of corporate and business law, tax law, estate planning, and insurance. Determining the most suitable structure for buy-sell agreements involves many considerations including defining the events that will trigger the sale or transfer of a business interest, calculating the business valuation and purchase price, and determining how a buy-out will be funded.

Understanding buy-sell agreements is also crucial for deal counsel when reviewing a target's existing buy-sell agreements in the context of a merger or acquisition as these agreements can have a significant impact on the terms of a deal.

Listen as our authoritative panel discusses negotiating and drafting techniques for effective buy-sell agreements. The panel will discuss the different types of buy-sell agreements and the suitability of each and explain key considerations for deal counsel.