A buy-sell agreement (sometimes known as a shareholder's agreement) provides for an orderly transfer of ownership of a closely held corporation. It is a legal agreement among the shareholders or between a company and its shareholders. The owner's objectives for the future ownership and control of the company determine what goes into a buy-sell agreement. State laws also affect what provisions are allowable. The buy-sell agreement usually addresses 10 areas of potential conflict.

  1. Specific value
  2. Date of value
  3. Triggering event
  4. Limiting ownership
  5. Majority shareholder/minority shareholder clause
  6. Dispute clause
  7. Terms and conditions
  8. Trusted agreement
  9. Non-compete clause
  10. Gift to heirs