Buy-Sell Agreement

A buy–sell agreement, also known as a buyout agreement, is a legally binding agreement between co-owners of a business that effects transfer of ownership shares to the other owners if an owner dies, becomes disabled, is otherwise forced to leave the business, or chooses to leave the business.

An insured buy–sell agreement (triggered buyout is funded with life insurance on the participating owners' lives) is an excellent way to ensure the buy–sell arrangement is well-funded to purchase an owner's shares when the buy–sell event is triggered.