You’ve worked hard to drive your business to where it is today. With that in mind, it’s never too early to start thinking about and creating a well-rounded transition plan for down the road.

Whether you’re retiring or exiting your business next year or several years from now, we can guide you through your options and opportunities. At Investco Financial, we can help you develop a comprehensive succession plan that positions you, your family and your business for the best possible outcome.

Business succession planning

Transition your business with confidence and a clear path to meeting your personal and business goals. Let us show you how.

You’ve worked hard to drive your business to where it is today. With that in mind, it’s never too early to start thinking about and creating a well-rounded transition plan for down the road.

Whether you’re retiring or exiting your business next year or several years from now, we can guide you through your options and opportunities. At Investco Financial, we can help you develop a comprehensive succession plan that positions you, your family and your business for the best possible outcome.

Shareholders’ Agreement

A shareholders’ agreement is one of the most important documents for a business to have because it addresses several important aspects relating to share ownership, such as:

• Issues relating to who can own/buy/sell shares

• What happens upon the death/disability or bankruptcy of a shareholder

• Typically contains right of first refusal and methods of dealing with offers from third parties

• Other issues such as dividend policy, employment terms, non-competition, etc.

In corporations with multiple shareholders, a well-crafted agreement will allow for a smooth transition after the death of a shareholder. Even very successful businesses oftentimes do not have the funds available to buy out a significant shareholder, and without that funding, the spouse or child of the deceased could become partner even if that is not a desirable outcome for all parties involved.

Insurance on the lives of shareholders means there will be immediate funding available to purchase their shares in the event of death or a disability. Insurance can be more cost effective and convenient to fund a buy/sell than other options such as using borrowed money, liquidating assets, creating cash reserves or using after-tax corporate profits. At the same time, the shareholder can utilize the tax efficient nature of life insurance to achieve their estate planning goals.

Keep in mind that it’s crucial to periodically review the value of the corporation to ensure that the buy/sell is properly insured and that the amount of coverage continues to increase in step with the business.