For business owners
An agreement describes the transfer. Funding completes it.
Buy-sell funding considers where the money would come from when an ownership interest must change hands under an existing agreement.
What it is
Understanding Buy-Sell Funding.
A buy-sell agreement sets out how an ownership interest is transferred on death, disability, retirement, or departure.
Funding considerations address how the purchase would actually be financed, and by whom.
Who it may be relevant for
- Partnerships and multi-shareholder companies
- Family businesses with some owners active and others not
- Companies with agreements that have not been reviewed recently
- Owners concerned about an unintended co-owner
Considerations
Common financial considerations.
These are the inputs most often reviewed during an analysis. None of them are recommendations on their own.
Valuation method
How the interest is valued, and how often that figure is refreshed.
Funding source
Company cash, borrowing, instalments, or insurance-funded approaches.
Structure
Cross-purchase, entity-purchase, and hybrid structures differ in effect.
Adviser coordination
Legal and tax advisers should review structure and documentation.
Questions to consider
Worth thinking through first.
- 01Do we have a current agreement, and when was it last reviewed?
- 02How is the business valued in that document?
- 03Where would the purchase funds come from today?
- 04Would the remaining owners be comfortable with the outcome?
The process
How the analysis works.
- 01
Start With Your Situation
Tell us what you're trying to protect.
- 02
Complete Your Financial Analysis
Provide information about your financial situation, goals, obligations, and priorities.
- 03
Review Your Options
We evaluate relevant strategies based on the information provided.
- 04
Build Your Protection Strategy
Determine which solutions are appropriate for your circumstances.
- 05
Implement & Review
Put the selected strategy in place and periodically review it as circumstances change.
FAQ
Frequently asked questions.
The information on this page is general in nature and is not individualized financial, legal, or tax advice.
Financial analysis
Your financial protection should start with your situation — not a product.
Before discussing solutions, we start by understanding your financial picture, priorities, obligations, and goals.