What is a shotgun provision?

A shotgun provision is a type of buy sell agreement between business partners. With a shotgun provision, the price of the shares of a business is specified in advance. If one of the individuals wants to sell her portion of the business to an investor, she has to offer to sell it to the business partner first at a specific price that was previously agreed upon. If the business partner does not want to purchase the shares, the selling party has to sell the shares at the price that was agreed upon to the new investor in the business. 
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