The buy-sell agreement every founder delays
60-second TL;DR
A buy-sell sets who can buy out whom, at what price, and how — before a crisis. Pair it with funding (life/disability) so the business can execute the agreement without fire sales.
Core ideas
- • Triggers: death, disability, retirement, voluntary exit, deadlock — define events up front
- • Valuation method: formula, appraisal, or agreed multiple — revisit on a schedule
- • Funding: life and disability on owners/key people so survivors can buy shares without draining cash
- • Cross-purchase vs. entity redemption: structure affects tax and who holds policies
- • Continuity stack: buy-sell + key person + ops documentation so the company keeps running
Next steps
Capital works best with operations and continuity in view — not in silos.