If you or one of your fellow business partners were to become disabled or retired, or to pass away prematurely, who would gain control that ownership share of the business? Once that fundamental question is answered in a written Buy-Sell Agreement, the next step is provide funding so this transition can be financially completed.
There are important concerns that can be answered by a well structured Buy-Sell Agreement – assignment of day to day responsibilities, cash needs of surviving heirs, handling of different personalities – but the main question remains how to financially replace an owner if they make a planned or un-planned exit from the business. A written but unfunded Buy-Sell agreement, while legally binding, is really nothing more than a promise that payment WILL be made, but doesn’t provide the mechanism of HOW payment will be delivered.
In this episode hosts Will Steih and Josh Null discuss the reasons why you should have a fully funded buy-sell agreement, and give practical tips on how to accomplish that. Tune in to learn:
- The benefits of a fully funded buy-sell agreement
- The 5 ways to fund a buy-sell agreement
- The different types of Buy-Sell Agreements
- How life and disability insurance can be used to fund a buy-sell agreement
You can find our Buy-Sell Agreement Funding resource center by visiting https://v0y.3de.mytemp.website/business-owner-center/buy-sell-agreement-funding . If you would like to continue the conversation with Josh and Will, make an appointment on our website at https://v0y.3de.mytemp.website/, or feel free to call 251-327-2124 or email jnull@gulfcoastfa.com.