June’s feature article by Wayne Vanwyck identifies the emerging business transition crisis due largely to the aging demographic of business owners. But there is another crisis that may be looming on the horizon and that is an unexpected death or disability of a shareholder.

This is a topic that for some reason frequently gets overlooked or avoided in business transition planning. But pause for a moment to consider;

“how much additional revenue would have to be generated in 2013 if your business was obligated to buy shares from the estate of a shareholder who passed away in 2012?” The additional amount of business you would have to do would be staggering, and perhaps even unachievable.

Purchasing shares from an estate with “after tax corporate dollars” is very inefficient and places a huge burden on the surviving shareholders. This can be totally avoided by using low cost, tax effective insurance products. Insurance solutions can give shareholders the peace of mind that a successful transfer of ownership will occur and their business will be sustainable.

Our aim is to help owners by creating the right combination of products that best meets their business transition objectives. Send us an email through our contact page to start a dialogue on how we might be of assistance to you.