A buy-sell agreement is the only document in a closely held company that is written for the day the owners stop agreeing. It is worth an afternoon now to avoid a year of litigation later.
Start with the triggers. Death, disability, retirement, divorce, bankruptcy and voluntary departure are not the same event and should not share a formula. A departure at year three is a different economic story than a death at year twenty.
Then the mechanics: who values the company, on what schedule, and what happens if the parties disagree with the number. A named appraiser and a fixed timetable remove nine tenths of the argument.
Finally, funding. An obligation to buy shares is only as good as the cash behind it. Insurance, instalment notes and a workable payment period turn a promise into a plan.
This note is general information, not legal advice. Every matter turns on its own facts — speak with a lawyer before acting.
