Business partner exit planning (buy-sell agreement)
Protect your business from the unexpected exit of a co-owner before it becomes a crisis.
Every business with more than one owner will eventually face the challenge of a partner needing to exit. Death, disability, divorce, disagreement or simply a change in direction can all trigger a situation that, without a documented plan, can destabilise the business and divide its owners. The time to agree on exit terms is before any pressure exists, and that time is now.
What is a buy-sell agreement and why does it matter?
A buy-sell agreement is a legally binding contract between co-owners of a business that determines what happens when one owner needs to exit. Without one, there is no agreed process for valuing the departing owner’s interest, no funding mechanism for the buyout, and no agreed timeline, leaving the remaining owners and the business exposed to prolonged uncertainty or a forced sale. Agreeing on exit terms before any pressure exists is almost always the difference between a managed transition and a crisis.
What events trigger a buy-sell agreement?
How is the departing owner's interest valued?
How do we fund the buyout?
We already have a shareholders' agreement. Do we also need a buy-sell agreement?
Protect the business
Avoid costly disputes
Protect all parties
Put the plan in place before you need it.
The right time to agree on exit terms is before any pressure arises.
- We will identify the trigger events most relevant to your ownership structure.
- We will advise on valuation methodology options and help you agree on an approach.
- We will advise on funding mechanisms, including insurance-funded buyouts.
- We will draft a buy-sell agreement tailored to your specific business and structure.
- We will coordinate with your accountant and financial adviser to ensure alignment.
A partner signals they want out
One of your business partners has announced they want to step back from the business. There is no agreement in place that deals with how their interest will be valued or acquired. You and your co-owners are now facing a negotiation that could be prolonged, expensive and divisive, at a time when the business needs stability and focus.
What's included in your business partner exit planning service
- Tailored buy-sell agreement drafting.
- Trigger event identification and advice.
- Valuation methodology advice.
- Funding and insurance structure coordination.
- Review of existing shareholder or partnership agreements.
The conversation no one wants to have is the one that protects everyone.
Planning for a business partner’s departure can feel like planning for failure, so most business owners avoid it. They focus on building the business, assuming the partnership will work out, and defer the difficult conversation about what happens if it does not. The result is that most businesses with multiple owners have no documented plan for the most disruptive event they could face. When a trigger event occurs, whether it is a partner’s death, disability, divorce, or simply a desire to move on — the absence of an agreed plan leaves all parties in a position no one would have chosen.
From an unplanned exit to an agreed, manageable process
A well-drafted buy-sell agreement turns an unpredictable crisis into a defined process. It answers the four key questions before they become disputes: what events trigger the exit, what happens when they occur, how the departing owner’s interest is valued, and how the buyout is funded. With those answers documented and agreed, a partner exit follows a clear path. We will work with you and your co-owners to get that plan in place.
From unprotected co-ownership to a clear, agreed exit framework.
Identify and plan
We map out the trigger events and key commercial terms that matter to your situation.
Draft and align
We draft the buy-sell agreement and coordinate with your financial adviser and accountant.
Finalise and protect
We execute the agreement and ensure all co-owners understand their rights and obligations.
Experienced commercial lawyers ready to protect your business and its owners.
We know that planning for a business partner’s departure is a topic most co-owners would rather avoid. ADLV Law has helped many business owners put practical, commercially sound plans in place that protect everyone’s interests and ensure the business survives whatever the future holds.
We understand you want to know the cost, before we get started.
We will map out our process, from beginning to end, so you know what the journey will look like before you get started.
We will provide you with a clear and detailed Work Proposal covering each step along the way.
Our fair fees are all-inclusive. No hidden costs for telephone calls, emails, photocopying, couriers, or coffee.
Our great lawyer guarantee
We want to be part of your team over the long term. We achieve this by adhering to these core principles:
Take the time
We listen carefully to understand what you want to achieve. Then we thoroughly explain our advice and step you through the documents. You can be sure you know the full consequences.
Share our knowledge
We will pass on as much knowledge as we can, so you can make your own informed decisions. We want to make you truly independent.
Stick to our knitting
We only do what we're good at. You can be confident that we know what we're doing and don't pass on the cost of our learning.
Work as one team
Someone will always be available to answer your questions, or point you in the right direction. You will also benefit from a range of perspectives and experience.
Fair pricing
For advice and documents, we provide a fixed or capped quote so you don't take price risk. If you're in a dispute, we map out the process and costs so you know what to expect.
It's your show
We're not in this for our egos. We're in it for a front row seat to witness your success.
