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A buy-sell agreement contains provisions for the business to buy out the principal's share of the business in the event of a disability. A solidly funded buy-sell agreement demonstrates the strength of your business to investors and creditors while assuring your employees and customers that your business is prepared to meet unexpected challenges. It can help safeguard your business by providing the funds necessary for a disabled owner to purchase his or her share of the business, up to the terms of the contract. The funds to complete the transaction can come from several sources – from the business, another buyer or an insurance policy. Choosing to fund with insurance helps prevent draining the funds from your business. Designed to fund the disability portion of a formal buy-sell agreement, this solution can help provide funds for small business partnership buy-outs in the event of total disability, while reducing the business disruption and financial burden of buying out the disabled partner and transitioning ownership.
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