Businesses have significant exposure to risks incurred by their equity shareholders. What would happen if a business partner or shareholder retired, died, became disabled, divorced, or filed for bankruptcy? Their equity stake could be liquidated outside of their partner’s control. Every business needs a buy-sell, or buyout agreement the moment the business is formed or as soon after that as possible.
A buy-sell, or buyout agreement, protects business owners when a co-owner wants to leave the company (and protects the owner who’s leaving). If a co-owner wants out of the business, wants to retire, wants to sell his shares to someone else, goes through a divorce, or passes away, a buyout agreement acts as a sort of “premarital agreement” to protect everyone’s interests, setting the price and terms for a buyout.
Every day that value is added to a business without a plan for future transition, it increases the owners’ financial risk. Steelpool can assist business owners addressing these risks with proper business continuation planning, ensuring that one of these events does not derail the business.
There’s a lot that goes into running a successful business and there’s a lot of planning that should go into protecting it. But how do you figure out if you have what you need?
– How much income will I receive from the business during my retirement?
– If I lost a key employee, how would that impact the business?
– What is the value of the business and what could I sell it for?
– Who would be a good potential buyer of the business?
The good news is you don’t need to figure this out on your own. Steelpool can address your top priorities and discuss solutions, so you can stay focused on running your business.
We can help you get started with an informal Business Valuation & Business Planning Report.
The value of your business can impact your retirement income planning, buyout agreement funding, business protection, and estate planning. Working with our CPAs, Attorneys, and Consultants, our experts can provide you with a planning report based on five commonly used valuation methods.
A complimentary, personalized estate analysis looks at the value of your business, your personal savings, and any transition plans you have in place. Any gaps or problems identified come with recommended solutions.
A proper plan helps ensure assets, both personal and business, while meeting lifetime objectives and distributed the way you want.
Our team is here to help you identify and implement solutions that are right for you, your business, and your family. We’re here to help our clients protect and achieve their financial goals through solutions that fit your unique needs.
A disability can have a devastating impact on a business owner’s financial security should they become too sick or hurt to work. Steelpool can help minimize that impact should the unexpected happen. We offer solutions to business owners that protect savings and retirement assets from being spent on keeping the doors of a business open until the owner returns to work.
Key Person Risk
Help your business recover from the unexpected loss of top talent.
Oftentimes, the most valuable assets of any business are the key people who contribute most to its success. If their loss would create a financial burden that puts the business at risk, a key person insurance policy is a simple and efficient solution.
With Key Person Insurance, your business is the owner and beneficiary of a life insurance policy for each key employee chosen, which can include business owners. If the unexpected does happen, the business receives cash, generally income tax free, to help overcome the financial burden of the loss.