The short answer
A buy-sell agreement sets the rules for buying out an owner when a triggering event occurs, such as death, disability, departure, or deadlock. Its valuation and funding terms often decide the outcome of a dispute.
Where it fits in your case
When an owner dies, leaves, or wants out, and in disputes over the buyout price.
What to expect
Triggers define when a buyout is required or optional.
Valuation may use a fixed price, formula, or appraisal; fixed prices often go stale.
Funding, such as life insurance or installment payments, determines whether a buyout is practical.
No agreement. Without one, an owner’s death can leave heirs and surviving owners in conflict.
What we need from you
The buy-sell or operating agreement, financial statements, and any prior valuations.
Common misconceptions
“The agreement sets a fair price.” Only if it was kept current.
“Heirs automatically become owners.” Agreements and default rules may limit that.