Do I Need a Buy-Sell Agreement for My Partnership?

Most business partnerships start with the best intentions, but not every partnership ends that way. That's why buy-sell agreements are so important.

A buy-sell agreement is a contract between business partners that dictates who can buy a departing partner’s share of the business and establishes a fair price for the partner's stake. The agreement also describes how to determine a company's value if all the owners decide to sell.