A buy-sell agreement, often called a "business will," is a legally binding contract between co-owners that governs how interests in a company are transferred if an owner leaves, retires, or passes away. Core Components of a Buy-Sell Agreement
This section defines exactly what circumstances activate the agreement. Common triggers include death, permanent disability, retirement, voluntary resignation, or a personal bankruptcy that might jeopardize company assets. Structure of the Buyout: business buy sell agreement sample
The business entity itself buys back the shares or interest. A buy-sell agreement, often called a "business will,"
Remaining owners purchase the departing owner's interest directly. A buy-sell agreement