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Buy and Sell Agreements

Structured succession when life disrupts partnerships

Business man and business woman chatting on the balcony

 

Safeguard the choices that built your business  

Building a business with partners is very personal. You've shared late nights, tough decisions, and breakthrough moments. But what happens if one partner passes away or becomes disabled? Without good financial planning, you might find that you’re suddenly in partnership with someone who has inherited part of your business, with little interest or knowledge of how it’s run. This can cause unnecessary business interruption, that affects decision-making, slows growth, and can impact the long-term stability of the business.

Without a plan in place, buying out a partner’s share can drain resources and disrupt the business. This is where buy and sell agreements come in – they set fair values upfront, guarantee funding through a  life insurance policy, and ensure everyone gets what they deserve. The result? Business partners remain in control and the family receives immediate and fair compensation. 

Why partner with Investec Life?
Defined agreements

In difficult times, the last thing anyone needs is uncertainty. Decisions made early keep things clear, fair, and free from tension.

Secured funds

Life insurance provides instant capital for the buyout. No last-minute loan application, no selling assets, no draining the business account at the worst possible time.

Partnership continuity

The people you chose to build with remain in control. Meanwhile, the departing partner's family gets fair value immediately - everyone wins.

Download our Business Protection brochure PDF 1.36 MB

Protect my business

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FREQUENTLY ASKED QUESTIONS
  • What is a buy and sell agreement and why do I need one?

    A buy and sell agreement is a legally binding contract between business partners that outlines what happens if a partner dies, becomes disabled, or exits the business. It ensures ownership transfers smoothly and fairly, avoiding disputes and financial strain on the company.

  • How is a buy and sell agreement funded?

    Most agreements are funded through life and disability insurance policies on each partner. When a triggering event occurs, the payout provides the capital needed for the remaining partners to buy the departing partner’s share, without borrowing or selling assets.

  • What are the benefits of having a buy and sell agreement in place?

    It protects both the business and the families involved. The surviving partners retain control of the business, while the departing partner’s heirs receive fair compensation quickly. This avoids lengthy negotiations, valuation disputes, and business disruption.

When life happens, we've got your business covered

Contingent Liability Cover

Does your business have oustanding debt?

Contingent Liability Cover settles loans taken out by a business where the owner has signed personal surety for the debt. It removes the risk of debt being paid from the signatory’s personal estate and enables continued operating without the burden of loan obligations. 

Keyperson Insurance

Are there key employees in your business who drive revenue or profitability?

If a keyperson passes away or becomes permanently disabled, this insurance helps the company meet its financial obligations until an appropriate replacement is found.