BUY-SELL AGREEMENT EXAMPLES

Definition

Buy-sell agreement examples are sample scenarios or template structures that illustrate how different types of buy-sell agreements operate, including cross-purchase, entity-purchase, hybrid, and wait-and-see designs. Examples typically show ownership percentages, triggering events, valuation methods, funding strategies, and tax outcomes. They help advisors and clients visualize how agreements function across various industries and ownership mixes"from two-owner professional practices to multi-owner family businesses. By reviewing multiple examples, owners can choose structures that align with their goals for control, fairness, and flexibility.

Common Usage

Advisors share buy-sell agreement examples in presentations, handouts, and proposal documents to make the planning process more concrete. They may adjust numbers or roles to mirror a clientTMs situation, showing, for instance, how a cross-purchase agreement works for two equal owners versus three unequal owners. Coordination with attorneys ensures that real agreements are drafted to reflect chosen examples accurately. Examples also appear in training programs for advisors and CPAs. Understanding buy-sell agreement examples enables advisors to move from abstract descriptions to practical design conversations that help owners select and implement the right structure.