Entity buy-sell agreement

{
  "id": "MLC-T-INS-001326",
  "term": "Entity buy-sell agreement",
  "field": "Insurance and risk management",
  "definition": "A legal contract among business owners and the business entity itself, outlining the terms for the repurchase of an owner's interest upon a specified event, such as death, disability, or retirement. The business entity is obligated to buy back the shares, and the departing owner or their estate is obligated to sell. Life insurance policies are often used to fund these agreements, providing the necessary capital for the buyout.",
  "url": "https://mlchart.com/terminology/insurance/entity-buy-sell-agreement/"
}