Exit planning is a necessary step that every business owner must eventually take. To protect themselves and their businesses from potential failure, many business owners have turned to buy-sell agreements as a solution. A buy-sell agreement is a legally binding contract between co-owners that outlines the process and steps for purchasing a co-owner's share of the business in case of their departure.

Successful businesses often have a key person whose skills and experience are critical to the organization’s long-term financial stability. This key person may be the founder/co-founder, director, or in any number of positions that are central to operating the business. In the event of their departure or premature death, it’s important to safeguard your company’s financial health.

By Robert Reaume Managing Director | Life Insurance Division Many businesses today lack a formal buy/sell agreement between owning partners....