A ‘Buy and Sell Agreement’ (also known as a buy sell arrangement) is a legal contract that sets out what will happen if a business owner dies, becomes disabled, retires or wishes to sell their interest in the company. It ensures ownership transitions are clear, agreed and legally enforceable.

(This is different to an ‘Agreement for Sale & Purchase of a Business’. Were you looking for information on buying a business or selling a business?).

‘Buy and Sell Agreements’ typically require a departing owner’s share to be sold back to the remaining owners, rather than being transferred to an attorney, an estate or the open market. This protects the continuity and stability of the business.

A ‘Buy & Sell Agreement’ should be specifically drafted to reflect the specific nature of the business, how it is owned, the number of owners etc, and reflect on the tax implications, and estate planning implications.

These agreements are often prepared alongside life or disability insurance held by the remaining owners. We regularly work with insurance providers to ensure the agreement and insurance arrangements align. Insurance is helpful, but not required.

A ‘Buy and Sell Agreement’ should be tailored to the structure of the business, the number of owners and the tax and estate planning implications. Our commercial team can draft an agreement that reflects your specific circumstances and assist with negotiations between owners.

Our team of Buy & Sell Agreement Lawyers can draft for you the right agreement for your situation, and assist with negotiations between the owners.

We can help with:

• Understanding how a ‘Buy & Sell Agreement’ applies to your business

• Integrating a ‘Buy & Sell Agreement’ into your estate planning

• Drafting a tailored ‘Buy & Sell Agreement’

• Liaising with insurance brokers where appropriate

• Ensuring you understand the agreement and its implications