Scenario:
Michael, 61, co-owned a financial consulting firm with 25 employees. He had always assumed he would gradually phase out of the business, but when his partner unexpectedly passed away, Michael was left with a major dilemma.

His late partner’s shares defaulted to his family, who had no financial background. The family wanted an immediate payout, but without a buyout agreement in place, Michael had no access to capital to purchase their shares.

The Risk:

If Michael couldn’t buy out the late partner’s shares, the family might have sold them to an outside investor—someone who didn’t align with the firm’s vision. Worse, they could have forced a company sale at an undervalued price, meaning Michael could have lost control of the business he had spent decades building.

How Rock Solid Financial’s Strategic Planning Could Help:

If Michael and his partner had set up a buy-sell agreement funded by life insurance, Michael could have had the immediate liquidity needed to buy out the family’s shares—without taking on debt.

Instead of risking a forced sale or unwanted ownership changes, Michael could have secured full control of the firm and ensured its stability.

If this sounds like you or it’s a scenario you’d like help avoiding, we can help. Book a consultation today.