A buy-sell agreement is a legally binding contract that outlines how a business owner's share of a company will be transferred in the event of certain triggering events, such as death, disability, or retirement. These agreements ensure a smooth transition of ownership and provide financial security for both the remaining owners and the deceased owner's heirs. Life insurance is often used in conjunction with buy-sell agreements to fund the purchase of the deceased owner’s share, ensuring that the business can continue to operate without financial strain.
congrats on reading the definition of buy-sell agreements. now let's actually learn it.