Table of Contents

Acknowledgements
Foreword
Preface
    Understand the Dangers of Your Current Agreement
    A Word to the Wise
    How to Read this Book

PART I: WHY YOUR BUY-SELL AGREEMENT WON’T WORK

Chapter One: Your Buy-Sell Agreement Won’t Work
    The Problem Lies with the Owners
    How Buy-Sell Agreements Come Into Existence
    The Solution Lies with the Owners

Chapter Two: Begin at the Beginning
   Begin with the End in Mind
   Beginning Questions
   When Is the Ideal Time to Sell Your Business?
   When Is the Ideal Time to Trigger Your Buy-Sell Agreement?

Chapter Three: Business Issues & Latent Problems
   Key Business Issues
   Latent Problems with Buy-Sell Agreements
   You Will Be a Buyer or a Seller

Chapter Four: Business Factors to Consider
  
The Moving Parts of Buy-Sell Agreements
   Key Aspects of Buy-Sell Agreements
   Buy-Sell Agreements Are Common to All Industries and Corporate Forms
   The Buy-Sell Agreement Checkup
   Mock Trigger Events
   The Buy-Sell Agreement Audit Checklist

PART II: BUY SELL AGREEMENT ESSENTIALS

Chapter Six: Trigger Events: Those Things That Happen
   Overview of Trigger Events
   An Acronym: QFRDDD
   The 20 Ds of Buy-Sell Agreements
   Noncompete Agreements

Chapter Seven: Categories of Buy-Sell Agreements

Chapter Eight: Types of Buy-Sell Agreements

Chapter Nine: Fixed-Price Buy-Sell Agreements
  
Advantages
   Disadvantages
   A Bad Cure
   Recommendation
   Conclusion

Chapter Ten: Formula Buy-Sell Agreements
  
Advantages
   Disadvantages
   Formulas Related to Book Value
   Formulas Related to Earnings
   Possible Formulas and Future Earnings Patterns
   Possible Multiples
   Other Caveats for Formula Agreements
   Recommendation

Chapter Eleven: Shotgun Agreements
  
Advantages
   Disadvantages

Chapter Twelve: Rights of First Refusal
  
How They Work
   What They Do

PART III: VALUATION PROCESS BUY-SELL AGREEMENTS

Chapter Thirteen: Valuation Process Buy-Sell Agreements and Their Defining Elements
  
Valuation Process Agreements
   The Defining Elements of Valuation Process Agreements
   Overview of Funding Mechanisms

Chapter Fourteen: The Defining Elements of a Valuation Process Agreement Explained
  
Defining Element #1: The Standard of Value
      Fair Market Value
      Other Standards of Value
      Conclusion on the Standard of Value
   Defining Element #2: The Level of Value
      Levels of Value Charts
      Practical Thoughts on the Levels of Value
         The Word Picture
         The Visual Picture
      Suggestions for Specifying the Desired Level of Value
   Defining Element #3:  The “As Of” Date of the Appraisal
      The “As Of” Date Determines Information
   Defining Element #4:  Appraiser Qualifications
      Qualifications of Appraisal Firms
      Qualifications of Appraisers
      Selecting Appraisers
   Defining Element #5:  Appraisal Standards
      Why Standards Should Be Specified
   Conclusion

Chapter Fifteen: Treatment of Life Insurance Proceeds in Valuation
  
Treatment 1: Proceeds Are a Funding Vehicle
   Treatment 2: Proceeds Are a Corporate Asset
   Which Treatment is “Fair”?
   The Rest of the Story

Chapter Sixteen: Multiple Appraiser Agreements
  
Thought Processes Behind Multiple Appraiser Agreements
   Third Appraiser as Reconciler
   Third Appraiser as Determiner
   Third Appraiser as Judge
   Third Appraiser as Mediator
   Process Overview
   Advantages
   Disadvantages
   Concluding Observations

Chapter Seventeen: The Recommended Structure: Single Appraiser, Select Now and Value Now
   Single Appraiser, Select Now and Value Now
   Single Appraiser, Select and Value at Trigger Event
   Single Appraiser, Select Now and Value at Trigger Event

Chapter Eighteen: Other Important Aspects of Process Buy-Sell Agreements
  
Financial Statements
   Process Timetables
   Who Bears the Costs of the Appraisal Process?
   Who Benefits (or Loses) from Unavoidable (or Avoidable) Delays?
   Appraiser or Appraisal Firm?

Chapter Nineteen: Pete and Sam Reprise

Chapter Twenty: Process-Busting Valuation Issues
  
The Appropriate Level of Value
   Embedded Capital Gains in Asset-Holding Entities
   C Corporations
   Tax Pass-Through Entities
   Tax-Affecting Earnings in Tax Pass-Through Entities
   Marketability (or Illiquidity) Discounts Applied to Controlling Interests
   Key Person Discounts

About the Author
Articles Available for Reprint
Public Speaking
Afterword