Intra-Family And Other Business Transfer Techniques - Introduction
Most small businesses or family-owned business owners would like to see the legacy of the company, that they built, continue on long after their death. Whether that continuation is by another younger family member, stepping up to the plate, to run the business or an outright sale to an unrelated third party is determined by the current owners.
Intra-Family Transfers:Buy-Sell Agreements, Installment Notes, Self-Canceling Note
These are business and property transfers that are done between direct relatives, related parties or children and grandchildren of the current business or property owners. There are several methods to initiate this transfer, many with favorable terms for the younger family member.
Other Business Transfer Techniques:
If there are no family members that can afford to buy or none that show an interest in continuing the business, then the owners may need to look at third party buyers. The buy-sell agreement is commonly used for third party sales.