What are the Purposes of a Buy-Sell Agreement?

  • To establish value of shares for estate tax purposes.
  • To create a market for the owner’s business interests (requiring a sale at certain triggering events, such as death).
  • To provide a mutually agreeable price and terms (reduce litigation and friction).
  • To facilitate a smooth transition of management and control business interests.
  • To provide the family of a deceased owner with liquidity rather than non-marketable stock.