Phoenix and Scottsdale, Arizona Business Law Attorney- Arizona Buy-Sell Agreements

Law Office Of

Joseph A. Velez

480.710.5079

When knowledge and experience matter.

Real Estate & Business Law Attorney

The Law Office of Joseph Velez

Commercial Real Estate & Business Law Attorney

Scottsdale Financial Center

7272 E. Indian School Rd., Suite 111

Scottsdale, Arizona 85251

480.710.5079

A main concern for owners of a closely held business is what would happen if one of the owners was unable to continue making decisions, handling finances, or work for the business.  At the Law Office of Joseph A. Velez we properly draft Buy-Sell Agreements to minimize the loss and damage loosing a business owner can have.  A Buy-Sell Agreement defines how a buyout of an owner’s interest by the other owner’s or entity itself will occur and be structured.


There are a variety of triggering events that will be outlined in the agreement which may cause the Buy-Sell Agreement to go into effect.  Some of the most common are: death, disability, desire to sell interest to a third party, retirement, owner’s bankruptcy or divorce.


It is never to late to prepare for unforeseen events.  If you own a business it is best to proactively have a Buy-Sell Agreement in place.  Contact Phoenix business attorney, Joseph A. Velez to discuss how a Buy-Sell Agreement will fit your business.  There are many factors that will be discussed, tailoring the agreement specifically to your business’s needs.  It is important to discuss with a knowledgeable business attorney, whether you business requires a “mixed-agreement,” an Entity Redemption Arrangement, or a Cross-Purchase Arrangement.  The agreement will define the timeline for payment to the owner or the owner’s estate, whether the entity or the surviving shareholders have the obligation to purchase the interest, and whether a funding mechanism, such as life or disability insurance, should be maintained by the entity or the owners personally.  Attorney Velez can help determine the fair-market-value of the business (the price at which property passes between a willing buyer and seller, neither under any compulsion to buy or sell, and both with knowledge of all relevant facts).  Other provisions to consider in a Buy-Sell Agreement might be a Non-Competition clause and a clause providing for the termination of the Buy-Sell Agreement itself.


A Buy-Sell Agreement is an essential business and estate planning tool for any closely held business entity and its’ owners.  Executing a carefully planned Buy-Sell Agreement can assure owners that their interest in the business they built is secure regardless of any unforeseen circumstances.

Phoenix business lawyer and estate planning attorney Joseph A. Velez has been offering comprehensive business planning services throughout Maricopa County since 1994.

Factors that must be considered when drafting a Buy-Sell Agreement:

  1. -Applicability

  2. -Type of agreement

  3. -Buyout price and time for payout

  4. -Funding

  5. -Security

  6. -Loans

  7. -Other