Buy-Sell Agreement Cost

Jump to Section

Need help with a Buy-Sell Agreement?

Post Project Now

Post Your Project (It's Free)

Get Bids to Compare

 Hire Your Lawyer

How much does a buy-sell agreement cost? A buy-sell agreement , sometimes called a "buy and sell" agreement, is a legal contract executed between business owners. The contract stipulates how one partner's share and stocks in the business will be handled if the partner dies or chooses to leave the business.

Buy-Sell agreements are vital documents that can dramatically change the organization of a corporation and must be drafted properly. The first question most business owners ask is how much a buy-sell agreement will cost. Let's explore this question and go over some general information about buy-sell agreements.

How Much Does a Buy-Sell Agreement Cost?

Many business owners choose to hire a corporate lawyer to draft a buy-sell agreement to ensure that the contract is legally binding and enforceable. Depending on where the business is located, various local business laws and contract laws can affect the legality of this important document.

There are two common types of buy-sell agreements, a cross-purchase agreement, and a redemption agreement.

  1. Cross-purchase agreement. This buy-sell agreement allows the remaining owners of the business to buy the former owner's interests in the company.
  2. Redemption agreement. A redemption agreement requires that the business entity, not other owners, buy the former owner's interests in the company.

In addition to dictating how a partner's share of the business will be transferred in the event of death or departure, buy-sell agreements may also help establish the value of a business.

Based on ContractsCounsel's marketplace data, the average cost of a buy-sell agreement is $975.00 .

Buy-sell agreement costs will vary depending on many factors. The complexity of the agreement and whether it is a buy-sell for a small business or a large corporation will directly impact the cost of a buy-sell agreement.

What's Typically Included in a Buy-Sell Agreement

Buy-sell agreements will vary depending on the business entity for which they are drafted. When drafting this agreement, a corporate lawyer will consider the business structure, whether the business is an LLC with partners or a corporation with shareholders, and any terms and conditions already laid out in the shareholders agreement or partnership agreement .

Although these contracts will differ and can be customized for a specific company, some standard terms that you will find in most buy-sell agreements include:

  • Parties involved in the agreement. All owners of the business need to be included in the agreement. The agreement should also include the percentage of shares or ownership each party has in the company.
  • Triggering event. Whether an owner passes away or chooses to leave the corporation, the triggering event should be included in the agreement.
  • The buy-sell structure. The buy-sell structure will include whether the agreement is a cross-purchase or redemption agreement, who has rights to purchase the shares and the price of shares.
  • Company valuation. Buy-sell agreements are a good way to establish the value of a company, and this can also be included in the agreement.
  • Tax considerations. When an owner leaves a company and shares or ownership are transferred to other owners or back to the business entity, it can have various tax ramifications.

Who Pays for a Buy-Sell Agreement?

Like any legal contract that an attorney drafts, a buy-sell agreement will cost money. The company that is requesting the buy-sell agreement will have to pay for an attorney's time when drafting this document.

A lawyer can bill for the time to draft the agreement, review an agreement, or handle any disputes arising because of the agreement.

Examples of Buy-Sell Agreement Projects

Buy-Sell Agreement Drafting

The most common buy-sell agreement project is drafting the agreement. A company that needs a buy-sell agreement will contact a corporate lawyer, and a lawyer will draft an agreement to fit the company's needs.

Agreements will vary depending on the size of the business, the number of owners, the company’s value, and how the owners agree to execute the buy-sell agreement.

These contracts are very important and need to be drafted correctly to be legally enforceable. An experienced corporate attorney will know what terms and conditions and provisions must be included in the contract.

Buy-Sell Agreement Review

In some cases, a company already has a buy-sell agreement in place but may want the document reviewed or edited. An attorney can go over the current contract to ensure it is legally enforceable or make changes the company's owners request.

Buy-Sell Agreement Disputes

Like any situation that involves a legal contract, disputes can arise surrounding the agreement. If the parties involved in a buy-sell agreement have a legal dispute, they may hire an attorney to settle the disagreement.

An attorney would represent the party who believes that the opposing party has legally wronged them. In some cases, an attorney can help draft a more comprehensive agreement that suits the needs of both parties.

Meet some lawyers on our platform

Kristen R.

1 project on CC
View Profile

Scott S.

3 projects on CC
View Profile

Daehoon P.

7 projects on CC
View Profile

Cory B.

2 projects on CC
View Profile

Drafting a Buy-Sell Agreement Cost

Drafting a buy-sell agreement requires the time and expertise of a licensed lawyer so legal fees will be incurred.

According to ContractsCounsel's marketplace data, the average buy-sell agreement drafting costs are $750.00 across all states.

Reviewing a Buy-Sell Agreement Cost

Even if the lawyer isn't drafting the contract, document review by an attorney will come with costs. Attorneys will expect to be compensated for their time and will bill their clients accordingly.

ContractsCounsel's marketplace data shows the average buy-sell agreement review costs to be $1,275.00 across all states.

How Do Lawyers Charge for a Buy-Sell Agreement?

When a company hires a corporate lawyer to draft an agreement, review an agreement, or help settle a dispute, the lawyer can structure their fee agreement in several different ways. Hourly rates are the most common fee schedule; however, flat fee rates are becoming increasingly popular for specific projects.

Hourly Rates for Buy-Sell Agreements

It is common for corporate attorneys to use an hourly rate fee structure. This means that the lawyer has a specific hourly fee and will bill a client for the number of hours spent working on a project.

The marketplace data for ContractsCounsel shows the average hourly rate for a corporate lawyer range from $275 - $350 per hour.

Flat Fee Rates for Buy-Sell Agreements

For specific legal projects, especially contract drafting, sometimes an attorney will use a flat fee billing structure. Using this fee structure, the attorney will provide the client a flat rate fee rate for their work on a particular project or case.

Clients should always be aware of what is included in a flat-rate fee. Lawyers may charge additional fees for revisions or review after the initial contract is drafted.

ContractsCounsel's marketplace data shows the average flat fee rate for buy-sell agreement costs to be $975.00 .

Get Help with a Buy-Sell Agreement

Do you need help with a buy-sell agreement project? If so, post a project in ContractsCounsel's marketplace to receive flat fee bids from business lawyers to handle your project. All lawyers on the ContractsCounsel's platform are vetted by our team to make sure you are provided with top-tier service.

How ContractsCounsel Works
Hiring a lawyer on ContractsCounsel is easy, transparent and affordable.
1. Post a Free Project
Complete our 4-step process to provide info on what you need done.
2. Get Bids to Review
Receive flat-fee bids from lawyers in our marketplace to compare.
3. Start Your Project
Securely pay to start working with the lawyer you select.

Meet some of our Lawyers

ContractsCounsel verified
Startup Attorney
14 years practicing
Free Consultation

I work with early stage startups (in Georgia and internationally) with their formation, contract, patent and investment needs.

ContractsCounsel verified
10 years practicing
Free Consultation

Experienced Attorney focused on transactional law, payments processing, banking and finance law, and working with fintech companies with a demonstrated history of driving successful negotiations in technology sourcing and transactions and strong understanding of government contracts and the procurement process

ContractsCounsel verified
14 years practicing
Free Consultation

Seasoned negotiator, mediator, and attorney providing premier legal advice, services, and representation with backgrounds in education, healthcare, and the restaurant and manufacturing industries

ContractsCounsel verified
Managing Partner
11 years practicing
Free Consultation

I am an experienced technology contracts counsel that has worked with companies that are one-person startups, publicly-traded international corporations, and every size in between. I believe legal counsel should act as a seatbelt and an airbag, not a brake pedal!

ContractsCounsel verified
9 years practicing
Free Consultation

Attorney (FL, LA, MD) | Commercial Real Estate Attorney and previous Closing Manager (Driving Growth from $10M to $50M+/month).

ContractsCounsel verified
11 years practicing
Free Consultation

John Daniel "J.D." Hawke is an experienced attorney with a law practice in Mobile, Alabama. He was born in Fairhope, Alabama and after earning his undergraduate degree at Auburn University, he received a law degree from Thomas Goode Jones School of Law in 2010. After law school, he formed the Law Office of J.D. Hawke LLC and over the last decade he has fought incredibly hard for each and everyone of his clients. His practice focuses on representing people facing criminal charges and clients dealing with family law matters. In addition to criminal defense and domestic relations cases, he also regularly handles contract disputes, personal injury cases, small business issues, landlord/tenant disputes, document drafting, and estate planning. He is licensed to practice law in the State of Alabama and the United States District Court for the Southern District of Alabama.

ContractsCounsel verified
9 years practicing
Free Consultation

Thomas Codevilla is Partner at SK&S Law Group where he focuses on Data Privacy, Security, Commercial Contracts, Corporate Finance, and Intellectual Property. Read more at Thomas’s clients range from startups to large enterprises. He specializes in working with businesses to build risk-based data privacy and security systems from the ground up. He has deep experience in GDPR, CCPA, COPPA, FERPA, CALOPPA, and other state privacy laws. He holds the CIPP/US and CIPP/E designations from the International Association of Privacy Professionals. Alongside his privacy practice he brings a decade of public and private transactional experience, including formations, financings, M&A, corporate governance, securities, intellectual property licensing, manufacturing, regulatory compliance, international distribution, China contracts, and software-as-a-service agreements.

ContractsCounsel verified
12 years practicing
Free Consultation

Michael has extensive experience advising companies from start-ups to established publicly-traded companies . He has represented businesses in a wide array of fields IT consulting, software solutions, web design/ development, financial services, SaaS, data storage, and others. Areas of expertise include contract drafting and negotiation, terms of use, business structuring and funding, company and employee policies, general transactional issues as well as licensing and regulatory compliance. His prior experience before entering private practice includes negotiating sales contracts for a Fortune 500 healthcare company, as well as regulatory compliance contracts for a publicly traded dental manufacturer. Mr. Brennan firmly believes that every business deserves a lawyer that is both responsive and dependable, and he strives to provide that type of service to every client.

ContractsCounsel verified
8 years practicing
Free Consultation

Attorney of 6 years with experience evaluating and drafting contracts, formation document, and policies and procedures in multiple industries. Expanded to estate planning last year.

ContractsCounsel verified
Managing Attorney
15 years practicing
Free Consultation

George is a lifelong Houston resident. He graduated from St. Thomas High School and then Texas A&M University. He obtained his Doctor of Jurisprudence from South Texas College of Law in 2007. He is experienced in real estate, estate planning & probate, civil/commercial matters, personal, injury, business matters, bankruptcy, general counsel on-demand, and litigation. He is active in the community serving as past-president of the St. Thomas Alumni Board, a current member of the Dads Club Aquatic Center Board of Directors, current member of the Dickinson Little Italy Festival of Galveston County Board of Directors, and former PTO President for Briarmeadow Charter School.

ContractsCounsel verified
Founding Partner
25 years practicing
Free Consultation

My clients are often small and medium size technology companies, from the "idea" stage to clients who may have raised a round or three of capital and need to clean up a messy cap table. I help with all legal matters related to growth that keep founders up at night - hiring people, allocating equity, dealing with shareholders and investors, client negotiations and early litigation counseling (before you need a litigator). I've seen a lot, and because I run my own business, I understand the concerns that keep you up at night. I’ve been through, both on my own and through other clients, the “teething” pains that will inevitably arise as you scale-up – and I’m here to help you. I have over 20 years international experience devising and implementing robust corporate legal strategies and governance for large multinationals. I now focus on start-ups and early/medium stage technology companies to enable a sound legal foundation for your successful business operations. Many of my clients are international with US based holding companies or presences. My 17 years abroad helps me "translate" between different regimes and even enabling Civil and Common Law lawyers to come together. Regularly, I handle early stage financings including Convertible Notes, Seed and Series A/B financings; commercial and technology contracts; international transactions; tax; mergers and acquisitions.

Find the best lawyer for your project

Browse Lawyers Now

Want to speak to someone?

Get in touch below and we will schedule a time to connect!

Request a call