Crosspurchase

Crosspurchase is a term used in business that can refer to two related concepts in different domains: marketing strategy and buy-sell planning among business owners.

In marketing and retail, cross-purchase describes the practice of encouraging customers to buy additional, related products. It often involves recommendations, bundles, or promotions aimed at raising average order size and increasing transaction value. While closely related to cross-selling, cross-purchase emphasizes the acquisition of a set of complementary items in a single shopping occasion or over a short period, sometimes through bundled pricing or suggested pairings.

In a corporate context, a cross-purchase agreement is a type of buy-sell arrangement among co-owners of a closely held business. Each owner agrees to purchase the shares of the other owners upon certain triggering events, typically death, disability, or departure. Funding is usually provided through life insurance on the lives of the other owners, and the purchase price is determined by a pre-agreed valuation method. Some agreements contemplate funding through existing assets or cash flow rather than insurance.

The arrangement provides liquidity to the owner's heirs and maintains business control within surviving owners. Tax implications, valuation considerations, and the choice between cross-purchase and other buy-sell structures are common topics in planning and advisory work.