A buy-sell agreement is a legally binding contract among business partners that outlines how a partner's share of the business will be handled in the event of their death, disability, or retirement.
Ensures Business Continuity
Provides a clear plan for ownership transfer, ensuring that the business continues to operate smoothly.
Valuation of Business
Establishes a predetermined valuation of the business, which helps avoid disputes among heirs or surviving partners.
Funding Mechanism
Life insurance policies are often used to fund the buy-sell agreement, ensuring that cash is available to purchase the deceased partner’s share.
