Why Your Client Needs a Business Valuation
As an insurance provider, your clients look to you to provide them the peace of mind in case of a financial or health emergency. For business clients, not only do you need to watch out for the individuals in the company but also the future of the organization as a whole. Whether the company is just starting up or whether it is ready for a change in ownership, knowing the value of the business at any given time plays a key role in its protection.
Valuations, Buy-Sell Agreements, & Insurance
Buy-Sell Agreements and life insurance very often join forces when that unfortunate moment does arrive. For instance, if a company majority shareholder unexpectedly passes away from a terminal illness, the minority partners would be able to acquire the majority owner’s share by having a buy-sell agreement in place beforehand. Because this is a case of the death of the owner, life insurance can be used to fund necessary purchases that must be made as a consequence. At a time when the economy is not at its best, these funds can cover capital requirements when the markets are down, supplemental retirement income, and even to buy out a retiring partner should death or disability not occur. A consistently updated business valuation will maintain a buy-sell agreement current in the case shareholders need to give up their shares or exit the company.