A buy-sell agreement sets out the terms under which one owner’s interest can be sold or transferred — and under which the remaining owner can purchase it. The agreement typically covers triggering events (death, disability, divorce, retirement, or voluntary departure), the method for valuing the business, the timeline for completing a buyout, and the funding mechanism (commonly life insurance on each owner’s life). Without a buy-sell agreement, these questions have no pre-agreed answers, typically meaning litigation.