When a business has more than one owner, an unexpected event can leave the remaining owners and the family of the departing owner in a difficult spot. A buy-sell agreement sets out in advance what happens to a share of the business.
In general terms, the agreement describes who may buy, how the price is decided and how the purchase is paid for. Some owners pair it with insurance so the funds exist when they are needed.
The details depend on your structure and your goals, so speak to a lawyer, an accountant and an insurance professional before signing anything. Members in each of these fields are listed in the directory. This article is general information, not advice.