Business continuity, ownership and key-person risk

Cross-purchase buy-sell

Owners agree to buy a departing or deceased owner’s interest, often supported by insurance owned by the other owners.

Request a private strategy reviewUnderstand the strategy

Strategy Overview

The decision at a glance.

The right question is not whether a strategy sounds attractive. It is whether its benefits, costs and obligations improve your complete plan versus practical alternatives.

When it may be worth considering
Closely held companies with a manageable number of owners who want surviving owners to acquire the interest directly.
Things to consider
Multiple policies, age or health differences, changing ownership and transfer-for-value rules can complicate execution.
How Helix can help
We connect valuation and funding to the agreement, compare structures and coordinate ongoing reviews with business counsel and the CPA.

A Closer Look

How this strategy works in practice.

These are the mechanics and decisions worth understanding before you spend time or money pursuing a detailed design.

01

How it generally works

  1. Owners agree on triggering events, valuation mechanics and who must purchase a departing owner’s interest.
  2. Each owner or a separate trust may own funding assets or insurance tied to the obligation.
  3. The agreement, ownership records, beneficiary designations and funding are reviewed together.
02

Questions worth answering

  • Does the agreement’s valuation formula reflect the business today?
  • How many policies or funding accounts are required as ownership changes?
  • What happens if funding is insufficient or an owner becomes uninsurable?

Prepare For A Useful Conversation

Information worth gathering.

You do not need every item before starting. These materials help replace generic assumptions with facts from your financial life.

  • 01Current ownership agreements, cap table and governing documents
  • 02A recent valuation or the financial data needed to prepare one
  • 03Business debt, guarantees and available liquidity
  • 04Succession roles, key people and existing insurance or funding

From Interest To Informed Action

A disciplined path from education to implementation.

  1. 01

    Explain

    Clarify what cross-purchase buy-sell is designed to accomplish and where it may not fit.

  2. 02

    Consider

    Share your goal, timing, decision-makers and relevant assets through a brief, private planning form.

  3. 03

    Discover

    Meet privately so we can understand your broader family, business, tax, estate and investment picture.

  4. 04

    Analyze

    Compare the strategy with simpler alternatives using consistent assumptions and downside scenarios.

  5. 05

    Coordinate

    Work with your attorney, CPA, insurance professional or other specialist before implementation.

  6. 06

    Monitor

    Review assumptions, documents, funding and results as laws, markets and your circumstances change.

Common Questions

Things to consider before you decide.

What is Cross-purchase buy-sell?

Owners agree to buy a departing or deceased owner’s interest, often supported by insurance owned by the other owners.

Who might consider this strategy?

Closely held companies with a manageable number of owners who want surviving owners to acquire the interest directly.

What are the key risks and tradeoffs?

Multiple policies, age or health differences, changing ownership and transfer-for-value rules can complicate execution.

What role does Helix Wealth play?

We connect valuation and funding to the agreement, compare structures and coordinate ongoing reviews with business counsel and the CPA.

Your Next Step

Could cross-purchase buy-sell improve your plan?

Tell us what you are considering through a brief, private planning form. If deeper analysis could be useful, the next step is a private discovery meeting focused on your circumstances.

Tell us what you are consideringNo recommendation is made until Helix understands your circumstances.

Primary Sources

Read the rules behind the strategy.

These government and regulatory resources are the starting point for this guide. They are not a substitute for advice based on your circumstances.

Source review completed August 2026.
IRS — Form 706 estate tax returnOfficial estate tax return and instructions covering valuation, deductions and portability elections.Visit source ↗IRS — Form 8925 employer-owned life insuranceReporting resource for employer-owned contracts and covered employees.Visit source ↗NAIC — Life Insurance Buyer’s GuideConsumer guide to policy types, premiums, guarantees, values and questions to ask before buying.Visit source ↗

Related Planning Decisions

One-way buy-sell

A succession agreement for a sole owner and a selected buyer—often a key employee, family member or outside party—supported by a defined funding plan. A retention stay bonus may be paired with it to keep the successor through transition.

Read the strategy guide →

Key-person protection

Company-owned coverage or reserves can help absorb revenue loss, replacement cost, lender pressure or transition expense after the death or disability of a critical person.

Read the strategy guide →

Captive insurance company planning

Evaluates whether a business has substantial, insurable risks that may justify forming or joining a regulated insurance company with credible underwriting, pricing, claims and risk distribution.

Read the strategy guide →
Important planning information

This page is educational and is not individualized investment, legal, tax, accounting or insurance advice. Strategy availability and results depend on your circumstances, current law, underwriting, product terms and professional implementation. No strategy eliminates risk, and tax outcomes are not guaranteed. Insurance services are offered only where appropriately licensed. Separately licensed representatives may receive insurance commissions, which creates a conflict of interest described in the firm's disclosures.

Begin

Explore whether cross-purchase buy-sell fits your plan.

Start with a private conversation about the goal, timing and decisions already in motion. Helix will help determine whether deeper analysis is appropriate.

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Strategy of interestCross-purchase buy-sell
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