A buy/sell agreement is a type of business succession plan. A properly written agreement can help minimise uncertainty, reduce disputes, and ensure continuity for the business and its owners.

This type of agreement sets out how the ownership of a business (often shares or units) will be transferred if a “trigger event” occurs. The most common types of trigger events are ‘involuntary,’ i.e. death, disability, or trauma of an existing owner.

A buy/sell agreement can also deal with situations where an owner no longer wishes to be involved in a business.

This guide explores the benefits, key documentation and steps involved in preparing a buy/sell agreement.

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