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buy-sell agreement

   Also found in: Financial, Acronyms, Wikipedia 0.01 sec.

buy-sell agreement n. a contract among the owners of a business which provides terms for their purchase of a withdrawing partner's or stockholder's interest in the enterprise.



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Every company has key employees and the majority of businesses have [key man insurance], especially if they have a buy-sell agreement with partners," Tanner says.
Beware the "expert" who ignores the trust ratio, especially in the following situations: 1 Agency buy-sell agreements: If an agency is out of trust, its value is diminished, a critical distinction to consider in agency buy-sell agreements.
In the case of a buy-sell agreement structured as a redemption agreement, whereby the employer is obligated to redeem the equity interest of a deceased employee, any EOLI policy purchased by the employer to fund its purchase obligation will be subject to I.
 
 
 
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