Buy sell agreements

A well-crafted buy sell agreement can help make sure your business ends up in the right hands, if you or one of your partners retires, decides to leave the business, becomes disabled, or dies.

Structuring your buy sell

A buy sell agreement defines when and to whom you can sell your part of the business and specifies a fair price. How you structure your buy sell agreement will determine who will buy the outgoing owner’s shares of the business, how much the buyer will pay and how the buy sell agreement should be set up. There are four common buyout structures:

Traditional cross purchase plan

Each owner who is left in the business agrees to purchase the co-owner’s shares if that individual dies or leaves the business.

Entity redemption plan

The business buys the departing owner’s shares, then the remaining owners rearrange the shares so they are equal partners.

One-way buy sell plan

Used when a sole proprietor wants their child, spouse or a key employee to purchase the business if the owner leaves or dies.

Wait-and-see buy sell plan

The business gets the first option to purchase the departing owner’s shares. If the business doesn’t buy it, the remaining owners can buy the shares.

Life insurance can play an important part in all of these plans by providing guaranteed funds for the purchase as long as the required premiums are paid.

Why Equitable?

Expertise in a complex business area

With Equitable, you have access to professionals who understand the needs of small business owners and can help you put a plan in place to protect your business against the loss or disability of a key employee.

Financial strength to fulfill our promises

Equitable Financial Life Insurance Company and Equitable Financial Life Insurance Company of America, premiere providers of life insurance and annuity products, have been helping individuals reach their most important goals.

Wide range of products to fit your needs

Equitable has a range of both term and permanent life insurance products that you can use to tailor your buy sell agreement to your business’s exact needs and budget.

Next steps

Want to find out more? Call 844-4-BIZINFO (844-424-9463) to schedule a time to work together on customizing a strategy to meet your specific needs.


All group insurance products are issued either by Equitable Financial Life Insurance Company or Equitable Financial Life Insurance Company of America, which have sole responsibility for their insurance and claims-paying obligations. Some products are not available in all states.
GE-125704 (06/2017) (Exp. 06/2019)