Business Planning

Buy/Sell Family Dynasty

A business owned by multiple generations and with a large number of family members involved in or owning the business needs to pay extra attention to the buy/sell planning.  As generation one leads into generation two then leads into generation three, groundwork needs to be laid so all the business owners understand the value of the business and how much their share is worth.  Once the parameters are set for the value of each business owner’s portion, the buy/sell funding can be done through life insurance with discounted dollars by way of premium payments instead of extracting value from the business after an owner has passed away.  Ideally, this planning should be done as early as possible since the age and health of the business owner will have a direct effect on the premium amount.  Once established, the life insurance portfolio should be reviewed frequently as the business grows to ensure the proper amount of death benefit is in place for each business owner to fund the buy/sell agreement.

Contact me if you have any questions or would like to explore buy/sell planning further for one of your clients, whether their business has many owners or just a few.