Private Business Owners

Private Business Owners


An individual was a 55% owner of a $20MM business likely to double in value. Her brother owned 44% of the business and was the chief operations officer. They had a friend who owned the other 1%, but were confident they could buy him out anytime. The woman wanted to be sure the business was not sold as long as her family or the employees wanted to keep it running.


We would start by fully assessing the situation and designing a strategic plan that might include eight custom solutions to meet their objectives:

  • Coordinating the brother's and sister's estate and business plans to restructure the ownership and management, and implementing a business succession plan to succeed at death or retirement
  • Preparing and funding a Buy Sell Agreement, and determining who will succeed to ownership, management or be bought out
  • Reviewing the business's financial structure, and assisting the business with cash management and investment strategies for retained earnings and/or retirement plans
  • Taking out key man insurance on the brother
  • Partnering with other advisors on estate freeze transfer strategies to reduce estate tax and coordinate with the Buy Sell Agreement
  • Determining the current and future estate tax, business transfer and buy-out costs, as well as funding the appropriate insurance, side-fund investments or using credit
  • Recommending an ESOP, as well as Deferred Compensation/Incentive/Phantom Stock Plans for employee retention
  • Developing a plan for the sister’s retirement needs, business transfer strategy, and appropriate investment strategy

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