Single appraiser process buy-sell agreements call for the selection of one appraiser who provides a business valuation for purposes of the agreement – the conclusion of which becomes the price. We use descriptive terms to differentiate between potential processes.

• Select and Value at Trigger Event. This type of buy-sell agreement calls for the single appraiser to be selected by the parties at the time of a trigger event. The selected appraiser then provides the business valuation based on his interpretation of the language in the buy-sell agreement. The single appraiser’s business valuation conclusion then sets the price for purposes of the buy-sell agreement.
• Select Now and Value at Trigger Event. At the time the buy-sell agreement is created (or an older agreement is revised), the parties discuss potential appraisers (or business valuation firms), perhaps interview one or more firms, and select a mutually agreeable appraiser/firm. This appraiser provides the business valuation called for at the time of a trigger event.
• Select Now, Value Now. With the Select Now, Value Now process, the business valuation process is invoked at the time the buy-sell agreement is signed. A baseline price is established based on an initial business valuation, and all parties are aware of the price and the process. The appraiser may provide periodic reappraisals. An additional business valuation may be required at the time of a trigger event, depending upon how long it has been since the last appraisal.