A buy/sell agreement is one tool in succession planning. Simply stated, a buy-sell agreement provides that the surviving owner, owners, or key management personnel will purchase a stated share of the business. It can be for a set price, allow for a valuation of the business by an independent business valuation expert, or provide a formula to calculate the business’ value. A key component of a buy-sell agreement is that it provides funding for the buy-out by a cash out or payment on terms. Life insurance can be an important funding tool a? buy-sell upon death of a business principal. Our team of business and tax attorneys assists business owners in creating and updating buy-sell agreements.