Partnership Exit Agreements

A partnership exit plan, often called a buy/sell agreement, is crucial for small businesses. It helps establish a clear plan for the future ownership and continuity of the business in the event of certain triggering events, such as the death or disability of an owner. It outlines the terms and conditions under which the ownership interest of a departing owner can be transferred, ensuring a smooth transition and preventing disputes among remaining owners or their heirs.

Funding a buy/sell agreement using life insurance is a popular and practical choice for small businesses because of: