Businesses are bold, innovative, dynamic, and forward moving. They reflect the entrepreneurial spirit of their founders. They reflect the value found in taking calculated risks in exchange for achieving dreams and fulfillment. Would it surprise you to know that you may be your company's single greatest risk? If you haven't established or updated your buy-sell agreement, you are taking a risk with the value of your business every day.
The risk comes into play in the event you, as the business owner and primary driver, suffer a disabling injury, illness, or premature death. In the absence of a well-drafted and insured buy-sell agreement, your business may have to be sold at a fraction of its value at a time when you or your heirs need its fair market value the most.
An insured and properly funded buy-sell agreement accomplishes these things for you, your heirs, and your colleagues:
The executed buy-sell agreement establishes the how, how much, and when a business ownership interest transfers. It legally binds the parties to the execution of the agreement provisions. Life insurance and disability insurance provide the necessary funds to fulfill the agreement promptly, efficiently, and on a tax-preferable basis.
If you have not reviewed or updated your buy-sell agreement and the policies that fund your agreement, it's time. Markets have changed, business values have changed, and insurance company rates have changed.
Don't be caught with these common errors: