Setting up a legally binding contract that specifies how a principal's share of the business is transferred to the remaining stakeholders, protects all parties and provide peace of mind against the unexpected. Buy-Sell agreements use life insurance to fund the transaction.

Since the selling price is negotiated when all parties and their estates are viable, a fair selling price may be negotiated; once an owner has passed, the owner's estate will be compromised because it has no way of affecting the valuation.
Negotiating a business valuation strategy backed by insurance protects all parties and provides comfort to all stakeholders; the business will continue operating and supporting everyone. The owner's family for example knows that a buyer is guaranteed and the remaining stakeholders know that they will not lose control to an outside investor.

Setting a fixed value for a business via a buy-sell agreement fixes the estate taxes. This in turn allows the business to use insurance to cover such costs without the risk of costly valuation disputes either internally or via a tax audit.