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Buy-Sell Agreement Funding

Your partnership is valuable. Make sure it's protected. We help you fund buy-sell agreements so ownership transitions happen smoothly when they need to.

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GEARED TOWARDS:

Business partners and co-owners who want to protect their company and each other when ownership transitions occur.

What You'll Gain

Clear outcomes and tangible benefits from working with us.

Clear ownership transition plan when partners leave

Funding in place to execute buyouts without cash strain

Protection for surviving partners and families

Fair valuation process agreed upon in advance

Business continuity preserved through major transitions

How It Works

A simple, straightforward process to get you protected.

  1. 1

    Recon

    We analyze your existing buy-sell agreement (or help you understand why you need one) to identify funding gaps.

  2. Design the Funding

    We match life insurance and/or disability coverage to your buyout needs and ownership structure.

    2
  3. 3

    Implement & Monitor

    We put the coverage in place and schedule regular reviews to ensure it stays aligned with your business value.

Ready to Get Started?

Send a Raven to get in touch with us.

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Frequently Asked Questions

Common questions about this service.

A buy-sell agreement is a legal contract that defines what happens to a business owner's share when they leave the company, whether due to death, disability, retirement, or other triggering events. It protects all parties by establishing the terms in advance.
Without funding, a buy-sell agreement is just paper. When a triggering event happens, you need actual money to execute the buyout. Life insurance provides an immediate cash infusion at exactly the moment it's needed.
The main types are cross-purchase (partners buy each other's shares) and entity-purchase (the business buys the shares). Each has different tax implications and is suited to different situations. Our buy-sell calculator can help you explore which fits your structure.
The coverage should match your business valuation. Try our buy-sell funding calculator for a quick estimate, or we'll help you determine the right amount and ensure it's reviewed regularly as your business grows.
Many buy-sell agreements are underfunded or haven't been reviewed in years. We can audit your current situation, identify gaps, and make sure your funding matches your current business value and ownership structure.
Common triggers include death, disability, retirement, voluntary departure, divorce, bankruptcy, or loss of professional license. Your agreement should clearly define which events trigger a buyout and under what terms. We'll help ensure your funding covers the most likely scenarios.
Valuation methods include fixed price (updated periodically), formula-based (like a multiple of revenue or earnings), or independent appraisal at the time of the event. Each has trade-offs for simplicity, accuracy, and cost. Your agreement should specify the method in advance to avoid disputes.
Insurance costs vary by age and health, which can create imbalances in a cross-purchase arrangement. Solutions include having the business pay premiums, using entity-purchase structures, or adjusting ownership percentages to account for premium differences. We'll help you find an equitable approach.