A "Buy/Sell Agreement" allows a business partner to own their business without any debt, in the event of an untimely death of one of the business owners. Much like a final will and testament of an individual, a Buy/Sell Agreement is simply a written plan of action, before the death of a business partner.
Many times the debt of a company is absorbed by the remaining business partner, causing them to dissolve the company, or put an extreme strain on the business, emotionally and financially. Or worse, force a quick sale of the business, at an undervalued price, due to fire-sale strategies to quicken the sale of the business.
Many business partners find themselves in the uncompromising situation of trying to run their business, while dealing with the distraught spouse of their business partner, upon his or her death. This scenario is comforable and rarely a business healthy process.
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