A buy-sell agreement establishes the criteria for the price to be paid a shareholder for his or her ownership interest.

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A buy-sell agreement typically includes a provision for determining the price to be paid for a shareholder's ownership interest in the event of certain triggering events, such as retirement, death, disability, or voluntary sale of shares. The agreement can specify a method for valuing the shares, such as by using an appraisal, a formula, or a negotiated price. By having a buy-sell agreement in place, shareholders can ensure a fair and orderly transition of ownership and avoid potential disputes and uncertainties.

A Buy-Sell Agreement Establishes the Criteria for the Price to Be