Effective Buy-Sell Agreement

April 30, 2013

In an interesting recent engagement, corporate counsel for a large Northern California printer engaged us to perform the work required by an innovative and effective Buy-Sell Agreement. Negotiated over ten years ago, the Buy-Sell Agreement required the company to hire two independent appraisers to provide an opinion as to the fair market value of a 50% interest (there were two equal shareholders) in the common stock of the company.

The Buy-Sell Agreement contained actual conditions for the scope and conduct of work. Corporate counsel worked with both appraisal firms to produce a duplicate set of documents prepared pursuant to a joint information request. Then, one joint on-site management interview was conducted with both appraisers in all meetings. Questions and discussions were far ranging and informative. Both shareholders and both appraisers were able to express and discuss their views of operations, the industry, future expectations and job responsibilities.

As required by the Buy-Sell Agreement, the appraisers were not to consult or discuss their work. On an agreed date, both appraisers submitted their scope-restricted reports to corporate counsel. Proving what ABA has long believed, two skilled appraisal firms acting (as they should) as non-advocates submitted reports within $ 25,000 of each other with an interest worth six (6) figures.

The dispute was settled quickly and fairly due to an effective and innovative Buy-Sell Agreement.


Valuations play a part in transactions, taxation, and litigation. For additional information or advice on a current situation, please do not hesitate to call.

Please reload

Our Recent Posts

We are increasingly being called to assist attorneys or the court in various litigation matters. Business valuations are frequently required in the fo...

Testimony and the Valuation Expert

February 1, 2014

Report Types and Level of Service

Different USPAP reports have different uses. 

ABA principals are credentialed certified business appraisers. By both...

Report Types and Level of Service

December 1, 2013

What's Real?

Are you dealing with Nominal or Real Wages? 

What's the Difference Between Nominal and Real?

As litigation support specialists, we are o...

What's Real?

September 1, 2013

Please reload


Please reload

©2018 by American Business Appraisers.