The loss of a business partner is one of the most serious risks to the survival of small closely held businesses. Therefore, a buy-sell agreement can assist professionals / business owners succession at retirement and in case of premature death.
Buy-Sell insurance is specifically designed to help the healthy owners of a small business purchase the interest of a disabled owner. Most small businesses cannot afford to indefinitely meet the cash requirements of a nonproductive owner.
The disabled owner needs to receive a fair payment for his/her share of the business.
A buy-sell agreement is the logical solution for both parties needs.