Buy-Sell Agreement (Equity)
A buy-sell agreement (equity) is a contract among a company's owners that establishes what happens to an owner's shares upon a triggering event such as death, disability, or a desired sale, including how the shares will be valued and who has the right to purchase them. Use this when co-owners of a company want a signed agreement in advance governing what happens to a shareholder's equity if they die, become disabled, or want to sell — including a right of first refusal for the remaining owner and an agreed way to value the shares. This is a starting draft only, not tax or legal advice; buy-sell arrangements interact with estate planning, insurance funding, and securities law in ways that vary by jurisdiction, so have a lawyer and accountant review the final terms before signing.
What's included
A ready-to-use buy-sell agreement (equity) with signature fields already placed for Shareholder A and Shareholder B. Fill in the bracketed details (like [Company Name] or [Date]) using Docracy's built-in text editor, then send it out for signature.
This is a general template for informational purposes only and does not constitute legal advice. Consult a qualified attorney to review it for your specific situation and jurisdiction before use.
Key clauses
- Triggering events, such as death, disability, voluntary exit, or termination
- Right of first refusal for remaining owners or the company
- Valuation method for the shares
- Payment terms and funding, such as installments or insurance proceeds
- Restrictions on transfers to outside parties
- Dispute resolution procedure
What you'll fill in
[Company Name][Shareholder 1 Name][Shareholder 2 Name][Number of Shares][Valuation Method][Purchase Price or Formula][Triggering Event][Payment Terms][Effective Date]Legal summary
Signing this agreement obligates the parties to follow an agreed process for buying and selling an owner's equity when a triggering event occurs, instead of negotiating terms from scratch under pressure. It gives remaining owners, or the company itself, the right to purchase a departing owner's shares at a pre-agreed valuation and sets the payment terms for that purchase.
Free for up to 2 signers, no account required. Need unlimited? Flat $10/month.
FAQ
Is this Buy-Sell Agreement (Equity) legally binding?
Signing through Docracy uses a simple electronic signature (SES), which is legally recognized for everyday business agreements under laws like the U.S. ESIGN Act and the EU's eIDAS regulation. This is a general template, not legal advice — for high-stakes or regulated agreements, have a qualified attorney review it for your situation.
Who needs to sign this Buy-Sell Agreement (Equity)?
This template includes signature fields for Shareholder A and Shareholder B — already placed, so you just fill in the details and send.
Can I edit this Buy-Sell Agreement (Equity) before sending it?
Yes — Docracy's editor lets you edit the text, add or remove signature fields, redact sections, and reorder pages before you send it.
Do I need an account to send this Buy-Sell Agreement (Equity)?
No — it's free for up to 2 signers with no account required. Create a free account only if you want to save it to a dashboard or reuse it later.
Try it with an AI assistant
Paste one of these into ChatGPT, Claude, or your assistant of choice:
“Explain the difference between a cross-purchase and an entity-purchase buy-sell structure.”
“Help me fill out a Buy-Sell Agreement for two co-founders with equal equity.”
“What valuation methods are commonly used in a Buy-Sell Agreement, and which fits a small private company?”
Why teams start with Docracy
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Free for up to 2 signers, no account required. Need unlimited? Flat $10/month.