What makes for a successful business partnership? Clear communication, shared goals and mutual respect are key. But to ensure the long-term viability of your business, a buy-sell agreement is a must.

A buy-sell agreement is a legal document outlining how partners’ ownership stakes will be handled should one of them die, depart or become unable to perform their duties. It’s easy to put off creating this agreement, especially when so many daily tasks beckon. But delaying action can put the business’s future at risk.

Buy-sell agreements are legally binding contracts that specify when, at what price and to whom a person’s interest in a business will be sold. Typically, a buy-sell agreement permits business owners to purchase another owner’s interest at a pre-agreed price. This can help ensure business operations continue smoothly, and firms aren’t taken over by outsiders who might not share the owners’ vision and values. It also helps assure that owners will