In this episode of the Owner’s Corner podcast, host Seth Whicker, a certified financial planner, stresses the importance of having a Buy Sell agreement for any business owner. He explains that while a robust estate plan covers some aspects, a Buy Sell agreement outlines how other people may become owners within the company, how shares will be valued and transferred, and what will happen to shares in the event of a shareholder’s death or disability. The agreement also ensures the continuation of the business and outlines a plan for the interim period when the founder is no longer there to run the company. Seth recommends reviewing the agreement annually and ensuring continuity between the Buy Sell agreement and estate plan.
“A Buy Sell agreement helps dictate how other people can become owners in the company, whether family members, employees, or potential buyers.” – Seth Whicker
This week on The Owner’s Corner:
- What causes probate to be a nightmare?
- How much of what he does has to do with tax law?
- The difference between a power of attorney and a durable Power of attorney.
- How to choose an attorney.
- The importance of having a power of attorney.
- Using a trust to avoid probate.
- How long-term care can eat up your estate?
- Joint titling accounts for seniors.
- The pros and cons of having a power of attorney.
- Advice for people who don’t have their finances in order.
Our Favorite Quotes:
- “A robust estate plan may not cover all aspects of protecting your business interests; a Buy Sell agreement is equally important.” – Seth Whicker
- “Pricing for the transfer of shares within the corporation is spelled out in the Buy Sell agreement, including how voting or non-voting shares are valued.” – Seth Whicker
- “A Buy Sell agreement ensures continuity in the event of a shareholder’s death, disability, or sale of the company, preventing a fire sale.” – Seth Whicker
- “Regular review of the Buy Sell agreement is crucial to ensure the valuation measurement has not changed since its implementation.” – Seth Whicker
About SYM Financial and The Owner’s Corner Podcast
The Owner’s Corner is a show for business owners. In each episode, host and financial planner Seth Whicker sits down with business owners and the professionals that serve them to talk about what it takes to build a business. Our guests come from many industries and walks of life to share their biggest wins, mistakes made along the way, and their thinking about the all-important exit planning.
Email Seth at swhicker@sym.com with questions, comments, and to schedule a one-on-one conversation.
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Disclosure: Certain links above are to third-party sites and are not affiliated with SYM Financial Corporation (“SYM”). SYM is an independent investment adviser registered under the Investment Advisers Act of 1940, as amended. Registration does not imply a certain level of skill or training. More information about SYM including our investment strategies, fees and objectives can be found in our ADV Part 2, which is available upon request.
