An entity redemption agreement is the legal contract governing an entity purchase buy-sell. It sets valuation, funding, triggering events, and obligations for the company to redeem an owner's interest. Insurance policies, sinking funds, or loans supply liquidity. The agreement coordinates with governing documents and should address disability, retirement, and dispute resolution to avoid post-event conflicts.

Counsel drafts the redemption agreement with valuation formulas, triggering events, and funding sources. Advisors maintain policy schedules and beneficiary designations. Periodic reviews update values and confirm compliance with lending covenants, shareholder consents, and board approvals to ensure a seamless redemption when needed.