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Buy-sell agreements function as business prenups, outlining decision-making authority within a company. Key discussions include the percentage of decisions requiring majority (51%), supermajority (75%), or unanimous consent. Such agreements are essential when involving employees with equity, as they address management issues and employee retention. Additional considerations involve third-party purchasers, and scenarios like death, disability, bankruptcy, and divorce. In divorce cases, the concept of equitable distribution may apply, where a judge determines asset division (potentially disregarding expert valuations). This emphasizes the importance of clear agreements to protect all parties involved.
