Will Your Buy-Sell Agreement Actually Work?
Legally sound ≠ financially prepared.
We evaluate the valuation, funding, and liquidity behind existing buy-sell agreements.
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Educational planning tool. Not a legal opinion or formal valuation.
The Agreement May Be Finished. The Planning May Not Be.
A buy-sell agreement says what happens when an owner dies, becomes disabled, retires, or leaves. It doesn't answer four financial questions.
What Is the Business Worth?
Is the value in the agreement still realistic? Has the business changed significantly since the agreement was signed?
Where Will the Money Come From?
If one owner must be bought out, does enough liquidity exist to complete the transaction?
Does the Funding Match the Agreement?
Existing insurance or other funding may no longer match the company's value, ownership structure, or agreement terms.
Will the Structure Work as Intended?
Ownership, valuation, taxation, insurance, estate planning, and succession planning need to work together.
Your Buy-Sell Agreement May Need Another Look
A review may be appropriate when:
- The agreement hasn't been reviewed in several years
- Business value has increased significantly
- Ownership has changed
- New partners have joined
- Insurance was purchased years ago
- An owner is approaching retirement
- The succession strategy has changed
- The owners aren't sure how the buyout would be funded
The Agreement Was Fine. The Numbers Had Changed.
Two owners created a buy-sell agreement years ago when their company was worth approximately $2 million. Each owner obtained funding based on that value.
The legal agreement still existed. The financial assumptions behind it had changed.
Buy-Sell Planning Is Not a One-Time Event.
A business changes. The planning needs to change with it.
Hypothetical illustration only.
We Don't Replace You.
We identify and organize the financial issues that may need attention, so you can address them within your area of expertise.
Something seems wrong
We review the financial planning behind the agreement.
Request a Buy-Sell Review →Don't Wait for a Triggering Event to Find the Problem.
If your business has a buy-sell agreement, operating agreement, shareholder agreement, or partnership agreement containing buy-sell provisions, review the financial assumptions before they are tested.
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