Partnership Buy / Sell Funding

When a partner in a business dies, the disposition of his or her business interest often creates many problems for his heirs as well as the remaining partners. There are many important issues that have to be dealt with. Who will purchase the shares of the deceased? What is a fair price for his shares in the business? Where will the funds come from?

These problems are easily resolved if a buy-sell agreement has been established.

A buy-sell agreement provides that:

Someone (e.g., the business entity, key employee, or the surviving partners) will purchase the deceased owner's shares at an agreed-upon price.
The deceased owner's estate is obligated to sell the shares at that price.

This example illustrates the need of a buy-sell agreement.

Acme Metric Hammers is a partnership with three owners; George, Howard, and Stanley. If George was to pass away, his shares in the company would be passed on to his son Harry. Harry does not have experience in running the business and both Howard and Stanley dislike the idea of sharing the company with him. It is reasonable to assume that if one of the other two partners passed away, George would feel the same way about their heirs. Setting up a buy-sell agreement will ensure the remaining partners attain full control of the company. It also assures the deceased that his heirs will receive a fair price for his shares.

Where will the funds come from?

All that remains are the funds to purchase the deceased shares. Having to suddenly liquidate a large part of the business to pay off the heirs of the deceased can be very damaging to the company. In the case where a partner passes away, the death benefit will help pay for his shares in the company.

With no money to lay out and with very minimal risk, Life Insurance is the most effective and cost-efficient strategy to help partners plan for the future.

Please contact us today for your no-obligation consultation. We look forward to helping you and your family.

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"I called Mark after hearing his radio advertisements on 680 News. What struck me about these ads were they had a very clear message and were direct and to the point. Over the past few years, I had encountered my share of challenges in trying to obtain the right level of life insurance for myself and my family; and after listening to these ads a few times while driving in to work I thought that Mark might be able to help.
I was right. When we met, my wife and I found him courteous, well-informed, and well-organized. The very thorough planning process he took us through at our first meeting helped us identify areas of weakness that needed to be fixed. He was very well versed in all the different kinds of life insurance policies that were available; and given the rather limited knowledge my wife and I had in this area, we learned much from that first meeting.
He also inspired trust. This was important to us - as I am sure it is to most people - in view of all the personal financial information that needed to be shared with him during the planning process.
In short, Mark was successful in getting us the life insurance we needed; and for this, we will be forever grateful. It was also a pleasure doing business with someone as persistent, helpful, knowledgeable, and customer-friendly as Mark; and I would have no hesitation at all in recommending him to anyone who is in the market for life insurance.
Thank you, Mark, for your help."
Govind Menon
Senior Portfolio Manager
Canada Pension Plan Investment Board

"It was a pleasure working with Mark. He was extremely professional and had a definite interest in the well being of my family, and protecting us against unforeseen harm. Mark took the time to work with me on various options, and we achieved the right protection for my family."
Grant Cansfield

Partner
Aird and Berlis LLP

"Mark has been our Insurance and Financial Advisor for fifteen years. We trust him implicitly to always find us the best solutions to meet our changing needs. What is truly amazing is that even after all this time, Mark still maintains the same incredible, personalized service he provided from the outset. Mark, you're the best in the business!"
Lee Rand
President
Rand Research Corporation

"At Growth Equity Partners, we strive to support small to medium sized private and public companies, execute transformational business initiatives. These initiatives include capital raises, acquisitions, construction of new facilities, management buyouts and other transformational events that happen in the life cycle of the company. As experienced professionals, we see our clients as our partners and invest with the same risk and reward profile as the entrepreneurs we work with.
By practicing what I preach, I too retained an expert to help me execute my estate and family plan. In doing so, I turned to Mark Halpern and illnessPROTECTION.com for his expert advice and support. Mark successfully guided me through the process from A through Z and has provided my family with peace of mind. Thanks Mark!"
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Growth Equity Partners