Benefits of Buy-Sell Agreements in Multiple-Owner Groups
Co-owners in multiple-owner dealerships should create owners’ buy-sell agreements because doing so can help protect their own interests as well as the health of their dealerships. While some owners leave their dealership interests to their estates, this solution can cause problems. This article discusses the benefits of establishing owners’ buy-sell agreements, which include creating smooth transitions to offering tax advantages. It also discusses various types of agreements and how to determine valuation mechanisms.