Buy-Sell Agreement

Buy-Sell Agreement - A buy-sell agreement is an agreement used by companies to sell the portion of a company that was owned by someone who is deceased to all the partners that remain alive, at a predetermined price, or by using a formula that has been predetermined. Sometimes this is called a business will and is often recommended by business specialists and financial planners to ensure that the buy-sell is a well-funded arrangement. This is a binding contract between owners are a guarantee that the company will continue to exist after an owner has passed away.