In this guide, we will explain what buying out a business partner means, how to prepare to buy out a business partner, and more. The formula involves ascertaining your former partner's equity stake, assessing the business worth, and determining the buyout sum.A buyout agreement is a binding contract between business partners that establishes the buyout details of one partner exiting the partnership. It's not a calculation, it's a negotiation. Verbal agreements can be enforced, but it requires some kind of corroborating evidence (like email) or testimony. Learn how to buy out a member in an LLC and create an LLC buyout agreement that protects your interests in this guide. A BuySell agreement can help all business partners determine what will happen in case of certain circumstances. An LLC buyout agreement template provides a framework for the legal paperwork that makes up an LLC buyout agreement. It is a legal agreement between the owners of a business that governs what happens if a partner dies, retires, or otherwise leaves the business.