Buy-and-Sell Agreement: Key points

• Buy and sell agreements stipulate how a partner’s share of a business may be transferred in the event of the partner’s death or departure.
• Buy and sell agreements may also establish a method for determining a business’ value.
• Cross-purchase buy and sell agreements allow remaining owners to buy the interests of a deceased owner funded by life assurance.
• Redemption buy and sell agreements require the business entity to buy the interests.