The document that decides what happens to a departing share
Buy-Sell Agreements
Working through what a buy-sell agreement should say, and whether the one you have still matches the business it was written for.
The Overview
What it is,in plain terms.
The agreement answers a small number of questions, and each one has consequences the owners rarely discuss until they have to. What counts as a triggering event. How the price is set — a fixed number, a formula, or an independent opinion of value. Who buys: the other owners, or the company. What happens if the person leaving is a sibling, or a spouse inherits a share, or two owners want different things at the same time.
Existing agreements fail in a pattern. The valuation clause names a number set years ago that no longer resembles the business. Disability is not a trigger, or is defined so loosely that nobody can say whether it has occurred. The document assumes an ownership structure that has since changed. None of that is visible until the day it matters, which is the worst possible day to find out.
Altus Financial does not draft this agreement, review its legal effect, or advise on the law that governs it. Your attorney does, and it is their document. What we do is the work that has to happen before drafting is useful: getting the owners to the same understanding, testing the valuation clause against a current estimate rather than a figure nobody has revisited, and making sure the agreement matches the company as it is now rather than as it was.
Who It's For
The situationsthis is built for.
- 01
Two owners with nothing written
Work through what should happen on each trigger, then take the answers to an attorney rather than a blank page.
- 02
An agreement nobody has read since it was signed
Read it against the business as it stands now and find where the two have drifted apart.
- 03
A valuation clause set years ago
Test the number the agreement names against what the company would defensibly be worth today.
- 04
Family owners with uneven involvement
Separate who owns the business from who runs it, before the conversation becomes a family one.
- 05
Disability that is not a trigger
Most agreements handle death and stop there, though long-term disability is the more common event.
- 06
Owners who want different things
Get the disagreement into the open while it is still hypothetical and can be settled on paper.
The Through-Line
How an engagementactually runs.
Every engagement follows the same five steps, scoped to your business.
Step 01 · 1–2 conversations
Discovery
A conversation about the business, not a pitch. We map how the company is actually owned, review whatever agreements are already in place, and get clear on what you want to happen if an owner dies, is disabled, or decides to leave. Most owners have answered some of this in their head and none of it on paper.
↳ A written summary of your structure, the gaps we see, and the questions worth answering next.
Step 02 · 2–6 weeks
Analysis
The underlying work, so the plan rests on numbers rather than impressions: a tool-assisted estimate of value where one is needed, an honest read on where the company is concentrated, and a structural review of any existing agreement. Assumptions get written down, so you can see how a conclusion was reached — and disagree with it.
↳ A value assessment or gap analysis, with the inputs it rests on and the assumptions written down.
Step 03 · 1–2 weeks
The Plan
The recommendation in writing: the structures, the sequencing, what each professional at the table is responsible for, and where the products fit. You finish this step knowing what we advise and why — including the parts we think can wait.
↳ A written plan with recommended structures, sequencing, and an advisor coordination map.
Step 04 · 4–12 weeks
Implementation
Putting the plan into effect. We coordinate the drafting your attorney does, keep the sequence moving between the professionals involved, and make sure each piece lands with whoever is responsible for it. Work that sits with other people runs on their timelines, so this step is coordinated rather than promised.
↳ The plan in effect — documents executed with your attorney, and each piece of the sequence with the person responsible for it.
Step 05 · Ongoing — annual or trigger-driven
Cadence
A plan written once is a plan that quietly stops being true. Value, ownership, and the people the business depends on all move, so we keep a standing rhythm with you and with your attorney and CPA — annually, and whenever something material happens. Valuation and funding levels are two of the things reviewed, not the whole agenda.
↳ A periodic review noting what changed, what it affects, and what needs to be refreshed.
The Questions
Frequentlyasked questions.
Do you write the agreement?
No. Altus Financial does not draft legal documents, review them for legal effect, or advise on the law that applies to them. Your attorney drafts the buy-sell agreement and it is their document. We do the thinking that makes their drafting efficient — the design questions, the owners' alignment, and the number the agreement will reference.
How often should an agreement be revisited?
Every two to three years, and after any material change in value, ownership, or the people the business depends on. The common failure is not a bad agreement; it is a reasonable agreement that quietly stopped matching the company.
How is the price usually set?
Three broad approaches: a fixed figure the owners agree and revisit, a formula written into the document, and an independent opinion of value obtained when a trigger occurs. Each has trade-offs in cost, speed, and how likely it is to be disputed. Choosing between them is a conversation, and it is worth having before it is urgent.
What happens if a trigger occurs and nothing was arranged?
The remaining owners or the company have to find the purchase price from cash, borrowing, or instalments to the departing owner or their estate — usually at the moment the business can least afford any of the three. That is the risk the agreement exists to remove, and it is why an agreement nobody arranged to honour is a promise rather than a plan.
How does this fit with the valuation work?
They pair naturally. The agreement needs a number or a method for arriving at one, and the assessment gives you a tested figure to reason from rather than a guess. Note what it is not: a tool-assisted estimate is a planning starting point, and an agreement that needs a formal figure should reference a valuation from a credentialed appraiser you engage separately. Owners often do the assessment first because it makes the agreement conversation concrete.
Related Topics
- buy-sell agreement
- business succession
- ownership transition
- cross-purchase
- entity redemption
- closely held business
- business consulting
Related Services
More of thebusiness-owner stack.
- 01
Business Value Assessment
Valuation & Continuity
A rough, tool-assisted estimate of business value — a starting point for planning, not an appraisal.
- 02
Business Coaching
Business Coaching & Consulting
Advisory work for owners who are the bottleneck in their own business — including sales and marketing.
- 03
Owner Dependence & Delegation
Business Coaching & Consulting
Working out what genuinely requires the owner, what only appears to, and how to move the second category off your desk.
Important Disclosures
- We do not provide legal advice and we do not draft legal documents. Buy-sell agreements are legal contracts that must be drafted, reviewed, and executed by qualified legal counsel engaged by the business and its owners. Altus Financial does not advise on the legal effect of any agreement.
- Tax implications of a buy-sell agreement — including entity-level vs. cross-purchase structures, basis adjustments, and valuation-clause treatment — depend on the specific facts and must be assessed by the client's own CPA or tax counsel. Altus Financial renders no tax or accounting opinion.
- Any value referenced in an agreement should be supported by an appropriate valuation. A tool-assisted assessment is a starting point for discussion, not a formal appraisal — see the value assessment disclosures.
Last reviewed: 2026-05-28
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Business Consultant
Benjamin Minifie
Business consulting for owners — valuation, continuity, and reducing owner dependence
Business Consultant
Stanislav Lisovskiy
Succession and management-depth coaching — the conversations owners avoid