Pit & Quarry, September 2012
that prearranges the sale of a business interest between a seller and a willing buyer A buy sell agreement allows the seller to keep control of his or her interest until an event specified in the agreement occurs such as the sellers retirement disability or death Other events such as divorce can also be included as triggering events under a buy sell agreement When the triggering event occurs the buyer is obligated to buy the interest from the seller or the sellers estate at its fair market value FMV The buyer can be a person a group such as co owners or the business itself Price and sale terms are prearranged which eliminates the need for a fire sale if the owner partner or major shareholder becomes ill or dies Selling to employees An employee stock ownership plan ESOP allows the owner of an incorporated A buy sell agreement or business prenup allows the seller to keep control of his or her interest until an event specified in the agreement occurs such as the sellers retirement disability or death quarry or sand and gravel plant to sell his or her stock to the ESOP and defer the capital gains tax Ownership can be transferred to the operations employees over time and the business can obtain income tax deductions for contributions to the plan An ESOP provides A market for the shares of owners who leave the business A strategy for rewarding and motivating employees The ability to benefit from available borrowing incentives The ability to acquire new assets using pretax dollars An outright sale To keep the income rolling in without having to show up for work every day succession planning might look at selling an owner shareholder or partners interest in the aggregates business outright When the business interest is sold the seller receives cash or assets that can be converted to cash that can be used to maintain the sellers lifestyle or pay his or her estate taxes The time to sell is optional now at retirement at death or anytime in between As long as the sale is for the full FMV of the business it is not subject to gift tax or estate tax On the other hand Business Finance You Have a Mining Operation to Run Ames Construction understands 2012 All Rights Reserved The stylized A logo and the company name are registered trademarks of Ames Construction Inc this so we tackle infrastructure projects for you We have the experience and resources necessary to complete your project safely on time and on budget So concentrate on the rest of your mining operation Ames is on the job To experience the confdence that comes from working with Ames Construction visit AmesConstruction com PQ True Conf idence in Your Project 68 PiT QuaRRY september 2012 www pitandquarry com
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