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It also describes common triggering events and the financing challenge, summarizing funding approaches such as instalments, sinking funds, borrowing, and insurance, with considerations for life coverage based on business and tax factors.",{"@graph":14,"@context":65},[15,34,56],{"@type":16,"itemListElement":17},"BreadcrumbList",[18,23,27,31],{"item":19,"name":20,"@type":21,"position":22},"https://docshare.wps.com","Home","ListItem",1,{"item":24,"name":25,"@type":21,"position":26},"https://docshare.wps.com/template/","Template",2,{"item":28,"name":29,"@type":21,"position":30},"https://docshare.wps.com/template/forms/","Forms",3,{"item":32,"name":10,"@type":21,"position":33},"https://docshare.wps.com/template/free-buy-sell-agreement-template-legal-bulletin/282330/",4,{"url":32,"name":10,"@type":35,"image":36,"author":41,"headline":10,"publisher":44,"fileFormat":47,"inLanguage":8,"description":12,"dateModified":48,"datePublished":49,"encodingFormat":47,"isAccessibleForFree":50,"interactionStatistic":51},"DigitalDocument",{"url":37,"@type":38,"width":39,"height":40},"https://docshare.wps.com/thumbnails/free-buy-sell-agreement-template-legal-bulletin/282330.png","ImageObject",442,249,{"name":42,"@type":43},"supergirl","Person",{"url":19,"name":45,"@type":46},"DocShare","Organization","application/pdf","2026-10-22","2026-09-16",true,{"@type":52,"interactionType":53,"userInteractionCount":55},"InteractionCounter",{"@type":54},"ViewAction",8,{"@type":57,"mainEntity":58},"FAQPage",[59],{"name":60,"@type":61,"acceptedAnswer":62},"How can a buy-sell agreement be funded when an ownership buy-out occurs?","Question",{"text":63,"@type":64},"The document notes three main methods: borrowing from a party, setting up a sinking fund or reserve, or acquiring insurance, and explains that life insurance use depends on business type, owner objectives, pricing, and insurance cost including taxes.","Answer","https://schema.org",{"og:url":32,"og:type":67,"og:title":10,"og:site_name":45,"og:description":12},"article",{"robots":69,"canonical":32},"index,follow",{"doc_id":71,"site_id":7},282330,1791302256,{"code":4,"msg":74,"data":75},"success",[76,81,86,91,96,101,105,110,115],{"id":77,"doc_module":22,"doc_module_name":25,"category_name":78,"show_sort_weight":79,"slug":80},11,"Presentations",90,"presentations",{"id":82,"doc_module":22,"doc_module_name":25,"category_name":83,"show_sort_weight":84,"slug":85},12,"Resumes",80,"resumes",{"id":87,"doc_module":22,"doc_module_name":25,"category_name":88,"show_sort_weight":89,"slug":90},14,"Invoices",70,"invoices",{"id":92,"doc_module":22,"doc_module_name":25,"category_name":93,"show_sort_weight":94,"slug":95},15,"Posters",60,"posters",{"id":97,"doc_module":22,"doc_module_name":25,"category_name":98,"show_sort_weight":99,"slug":100},16,"Social Media",50,"social-media",{"id":102,"doc_module":22,"doc_module_name":25,"category_name":29,"show_sort_weight":103,"slug":104},17,40,"forms",{"id":106,"doc_module":22,"doc_module_name":25,"category_name":107,"show_sort_weight":108,"slug":109},18,"Letters",30,"letters",{"id":111,"doc_module":22,"doc_module_name":25,"category_name":112,"show_sort_weight":113,"slug":114},21,"Paper Templates",5,"papers-templates",{"id":116,"doc_module":22,"doc_module_name":25,"category_name":117,"show_sort_weight":4,"slug":118},158,"General","general-158",{"code":4,"msg":74,"data":120},{"doc_id":71,"user_id":121,"nickname":42,"user_avatar":122,"doc_module":22,"category_id":102,"category_name":29,"doc_title":10,"doc_description":12,"doc_content":123,"file_id":124,"file_url":125,"file_type":126,"file_size":127,"view_count":55,"is_deleted":4,"is_public":22,"is_downloadable":22,"audit_status":22,"page_count":26,"language":128,"language_code":8,"site_id":7,"html_lang":8,"table_of_contents":129,"faqs":130,"seo_title":131,"seo_description":12,"update_tm":132,"read_time":22,"preview_page_count":4},962088121634,"https://ap-avatar.wpscdn.com/davatar_9964176cb1d06d4a9deccf72a44ae3dc","Lord   \nCommercial Lawyers  \nP: +61 3 9600 0162  \nFE:: +6inf3@l6d4l0 .au © Lord Commercial Lawyers 2011 Legal Bulletin  \nBUY-SELL AGREEMENT OR BUSINESS SUCCESSION AGREEMENT  \nIf your business is a company or partnership in which the ownership and management are corresponding, entering into a buy-sell agreement now can go a long way to avoiding problems at a later point.  \nWHAT IS A BUY-SELL AGREEMENT OR BUSINESS SUCCESSION AGREEMENT?  \nA Buy-Sell Agreement or Business Succession Agreement allows the remaining owners of a business to acquire the interest of a resigning shareholder or partner. A Buy-Sell Agreement or Business Succession Agreement will usually restrict an owner's ability to transfer their interest as a shareholder or partner. A well written Buy-Sell Agreement or Business Succession Agreement also provides the terms under which the remaining owners may or must acquire aresigning owner's interest on certain specified events.  \nWHY SHOULD YOU HAVE A BUY-SELL AGREEMENT OR BUSINESS SUCCESSION AGREEMENT?  \n• To prevent outsiders or heirs from obtaining an ownership interest in the business without you first having the opportunity to purchase the interest;  \n• To ensure the continuity of the business notwithstanding the death, retirement, bankruptcy or expulsion of an owner;  \n• To ensure continuity of management;  \n• To prevent the continued involvement in the business of retired or inactive shareholders or partners;  \n• To create a certain market and value for the shares of deceased, retiring or withdrawing shareholders or partners;  \n• To provide cash to an estate.  \nWHEN SHOULD A BUY-SELL AGREEMENT OR BUSINESS SUCCESSION AGREEMENT GO INTO EFFECT?  \nThe most common events which will trigger a buy sell agreement are:  \n• On an attempt to sell: When a shareholder or a partner seeks to sell his or her interest in the business, the  \nremaining shareholders or partners can retain a right of first refusal on the same terms as a third-party may offer or at a price set in the Buy-Sell Agreement.  \n• On Death: The death of a shareholder or partner triggers an obligation in the agreement to purchase the interest of the deceased; the purchasers would be the entity or the surviving shareholders or partners.  \n• On Retirement: The agreement may provide that shareholders or partners who are active in the business may or shall retire at a certain age or after a specified period of service, with their interest being purchased by the other owners.  \n• On Disability: The disability of a shareholder or partner who has been active in the business may trigger a buy out. The agreement would define\"disability\" and the means of determining the disability.  \n• On Expulsion or Termination of Employment: A partner or a shareholder's voluntary termination of employment or expulsion from the business may trigger a buy out.  \n• On Bankruptcy: An owner's bankruptcy or assignment for the benefit of creditors may also trigger a buy out.  \n• On Loss of License or Death of Licensee: Loss of a professional license by a shareholder or partner usually triggers a mandatory buy-sell obligation, to assure continued compliance with professional obligations.  \nFUNDING A BUY-SELL AGREEMENT OR BUSINESS SUCCESSION AGREEMENT WITH INSURANCE  \nA crucial issue where there is a buy out by an owner is whether the purchasers will have the necessary funds. Because so few businesses have sufficient cash or other resources to fund a buy out, the seller usually must accept an instalment payout and continue to share the risks of the future profitability of the business, unless the business has provided for a fund to buy out a major owner. There are essentially three methods for funding a buy out: (1) borrowing from a party, (2) setting up a sinking fund or reserve, or (3) acquiring insurance.  \n[1 www.lordlaw.com.au](1 www.lordlaw.com.au)  \nLord   \nCommercial Lawyers  \nP: +61 3 9600 0162  \nFE:: +6inf3@l6d4l0 .au Legal Bulletin  \nWhether life insurance should be used to fund","cbCaipUQM1QYQ2y5","https://ap.wps.com/l/cbCaipUQM1QYQ2y5","pdf",48128,"English","# Buy-Sell Agreement or Business Succession Agreement\n## What it is\n## Why you should have it\n## When it goes into effect\n## Funding with insurance","[{\"question\":\"How can a buy-sell agreement be funded when an ownership buy-out occurs?\",\"answer\":\"The document notes three main methods: borrowing from a party, setting up a sinking fund or reserve, or acquiring insurance, and explains that life insurance use depends on business type, owner objectives, pricing, and insurance cost including taxes.\"}]","Free Buy-Sell Agreement Template - Legal Bulletin | PDF",1789572220]