# Buy-sell agreement

What happens to a co-owner's stake when they die, quit, or want out.

Anyone buying with a partner wants this before the first disagreement rather than after it. It fixes the trigger events, how a departing share is valued, and who is obliged to buy it, which is the difference between an orderly exit and a forced sale of the whole business. Fund it deliberately as well: an obligation to buy out a partner's half with money you do not have is a promise that breaks at exactly the moment it is needed.

In numbers: A 50/50 partnership with no agreed [valuation](https://searchspheresource.com/glossary/valuation) method can spend more arguing than the stake is worth. Fixing it now at 4x [SDE](https://searchspheresource.com/glossary/sde), or at an appraisal both sides accept, costs $0 today.

Source: https://searchspheresource.com/glossary/buy-sell-agreement
Not dated: A definition is editorial: what a term means, why it matters, and an example. None of it reads a source that can go stale, so there is no date to take and a stamped one would be the build time wearing a costume.

Site index for machines: https://searchspheresource.com/llms.txt