A buy sell agreement is a legally binding contract that outlines what happens when a business owner dies, becomes disabled, retires, or decides to leave the company. It provides structure for transferring ownership and ensures remaining partners can keep the business running. Without a written agreement, families and co-owners may face conflict, valuation disputes, or legal delays that can threaten the company’s survival. Many buy sell strategies are funded with life insurance, which provides immediate liquidity for buying out a departing owner’s share. For any business with more than one owner, a written buy sell agreement is essential for continuity and long-term stability.