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A buy-sell agreement is a contract among business partners that establishes how to handle adverse events during their partnership. Often referred to as a buyout agreement, business will, or business prenup, this document is created while conditions are favorable to prepare for potential challenges. It outlines predetermined responses to common scenarios, known as the "Five Ds": death, disability, divorce, disagreement, and default. These situations can be harmful to a business, making it crucial for owners to have a plan specified in advance. Similar to a personal will, a buy-sell agreement is vital for ensuring smooth transitions and protecting the business's future.
