How the one-way buy-sell agreement can save a succession plan | LifeHealthPro

Most small business clients have two common — but often competing — goals when planning to exit the business: they want business-oriented successors to retain power over business assets while simultaneously providing for surviving spouses who have not been involved in the business. While controlling the line of succession can be relatively simple, it might unacceptably undermine the client’s ability to provide financial security for the surviving spouse. As an alternative to a traditional spousal lifetime access trust, the one-way buy-sell agreement can ensure that the client’s dual goals are met by providing spousal income security and an orderly business transition in a single package.

The insurance-funded one-way buy-sell strategy

In the family business context, the owner-operator frequently owns the majority — if not 100 percent — of the business’s interests. In the absence of proper planning, these business interests could potentially pass to family members with little or no business experience upon the owner’s death, which does little to safeguard the business’s future or provide long-term financial security to the owner’s family.

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For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at info@buysellflbiz.com or 239.738.6227. Also, visit our Florida Business Exchange website at www.fbxbrokers.com and my personal website at www.buysellflbiz.com.