What are the Purposes of a Buy-Sell Agreement?

1. To establish value of shares for estate tax purposes.
2. To create a market for the owner’s business interests (requiring a sale at certain triggering events, such as death).
3. To provide a mutually agreeable price and terms (reduce litigation and friction).
4. To facilitate a smooth transition of management and control business interests.
5. To provide the family of a deceased owner with liquidity rather than non-marketable stock.