Funny Names, Serious Consequences In Buy-Sell Agreements

Discussing buy-sell agreements with business owners, I sometimes get odd looks when I assign names to clauses they have, or don’t have, in their agreements. The owner might say, “If we’ve already set up a buy-sell agreement, why are you calling it a ‘wait-and-see’?” Or, “What do you mean I might want a ‘drag-along’ provision?” Terms anywhere from “no-sell buy-sell” to “Texas shoot-out” may sound funny, but they address serious aspects of exit planning.