Business Continuation & Valuation
When the time comes for your business to transition to the next generation of ownership, you'll want the change to cause as little disruption for your customers, employees and family as possible.
Thrivent Financial for Lutherans can help. Your decisions today can help ensure a smooth and fair transition in the future.
Buy-Sell Agreements
One way you can protect your business is through a buy-sell agreement. A buy-sell agreement identifies a buyer or potential buyer of your business and the conditions under which a sale will occur.
Four reasons to consider a buy-sell agreement:
- After your death, your business will continue to be managed on a daily basis because your estate may only sell your business interest to those you choose.
- To the extent cash is received on your sale, your estate will have additional liquidity that can be used to settle the estate. Remaining sales proceeds can be used to establish an income stream for your beneficiaries.
- Your estate will receive an agreed upon, fair and reasonable price for your business. A purchase price will be established among all parties while the business is vital, not when it's vulnerable to a lower price after your death.
- You'll have a fair method of arriving at an acknowledged business value for federal estate tax purposes. That's valuation the IRS generally accepts if the agreement is set up properly.
Your attorney can help you draw up the buy-sell agreement. Once in place, there are several ways to fund the agreement. Funding the arrangement with life or disability income buyout insurance on the owners helps ensure the continuation plan will work as you intended.
To learn more about how a buy-sell agreement could help your business, contact a Thrivent Financial representative. Your attorney can help you draw up the buy-sell agreement.
Thrivent Financial for Lutherans and its respective associates and employees cannot provide legal, tax or accounting advice or services. Work with your team of professionals, including your Thrivent Financial representative, your attorney and tax professional to determine and implement the appropriate option.
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