Corporate Board Room  

As a business owner, you are used to being in control. The proof is your successful business. Can you imagine a time when you will not be in control? Perhaps a sever injury or illness will force you to withdraw and give up that control or a divorce.

Will your business remain what it is today? Will it continue to support your family? Who will make the decisions? Do you have a plan in case the unexpected happens?   Buy-sell agreements play an increasingly important role in the financial well being of many businesses today. This is particularly true in closely held and family owned businesses.  

• When an owner dies, the owner(s) can buy that part of the business from the state for its full fair market value. The heirs receive cash and no longer have to worry about the business.
• If an owner withdraws because of disability or retirement, the remaining owner(s) can use the available cash value accumulation in a life insurance policy to help buy the departing owner's interest in the business.
• Buy-sell agreements identify a buyer for your business interest and create a ready market to help assure the smooth continuation of the business.
• Life insurance can help provide buy-out financing at the instant it is needed.
• A current Business Valuation with periodic review and updates.

A buy-sell agreement is a critical component to every business continuation plan. In the unfortunate event that a business owner, partner, or shareholder dies, the buy-sell agreement ensures that the business will remain intact and at the same time the family survivors will receive a fair cash settlement for the deceased individual's interest in the business. Most buy-sell agreements are funded with life insurance which provides for immediate funds to buy out the deceased owner's family at fair market value.

Most buy-sell agreements are funded with life insurance which provides for immediate funds to buy out the deceased owner's family at fair market value. When determining your insurance needs to fund your buy-sell agreements or owner disability plans, be sure to consider any costs, expenses or liabilities related to your business and how they will be handled. Call an expert in business succession to have a discussion and advise you on establishing your plan.