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Business Succession Planning

 
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Family Business Succession Planning

As an owner of a family business, are you concerned about what will happen when you step away from the business? Is there a plan in place, documented and funded, that will help preserve family harmony? Without a plan, the risk to your business’s survival is matched only by the risk to your family’s relationships. Learn how to increase your business’s chances for survival. Please take a few minutes to review this video that tells one family’s story.

For more information, contact your Security Mutual Representative.

Video Transcript

Your family business is doing well. You have survived the bad times, and flourished during good times. You’re proud of what you’ve done for your family, and rightfully so.

But have you thought things through? What will happen to your family business when your business passes to your son or daughter, or to your sons and daughters? Will the business flourish? Or will it flounder?

According to the Family Business Institute, only 30 percent of family businesses survive to the second generation. And only 12 percent survive to the third generation. That’s the bad news.

The three most common reasons given by families as to why a business failed after passing to the next generation are:

  1. Lack of adequate capital.
  2. Disputes among family members.
  3. Lack of planning.

The good news is that with proper planning, you—the business owner—can provide your business with capital when it is needed most. And you can greatly reduce the potential for disputes between your surviving spouse or, as often happens today, a former spouse and the children from each marriage, as the case may be.

Fortunately, there are some simple and affordable things you can do to greatly increase the odds so the family business can thrive when the next generation takes over.

Ask your Security Mutual life insurance advisor for help with your business succession plan.

Video Transcript

As a business owner, you know that businesses don’t run themselves. Your oversight, energy and time are necessary to stay on course.

But what happens if you are not at the helm? Is there a plan in place? Is it verbal? Written? Funded?

If you answered “Yes” to verbal, and “No” to written and funded, your family’s income flow and yours could be at risk.

Owners of successful businesses have to know how to solve problems as they come up, and they are good at meeting deadlines.

Speaking of deadlines, while the exact date is unknown, the event of your departure is a certainty. Planning for this event will increase the likelihood of the survival of your business and your family’s lifestyle.

Are you ready to be in business with a spouse or child of your deceased partner? Do you have the money to buy out the family? At what price? On what terms? Where do you get the money? A lending institution? Current business receipts?

The solution is a formal written, funded agreement. It’s better to come to terms with a living partner than with his or her family. Why? Each of you will be thinking like the survivor and the deceased, so the terms should be balanced. Because life insurance is the most efficient way to fund the agreement, it is always worth looking into.

You decide. Is the potential for financial and family chaos an attractive alternative? Is having debt hanging over the business a good thing?

If your answer is “Definitely Not,” then consider a formal, documented—and most important, funded—buy-sell agreement.

Did I mention that the beneficiary receives the life insurance death benefits income tax-free if the agreement is structured properly?

The Business Succession Plan

 

As a business owner, you know that businesses don’t run themselves. Your oversight, energy and time are necessary to stay on course. But what happens if you are not at the helm? Is there a plan in place? Is it written? Funded? Current? If you didn’t answer “yes” to all three requirements, your family’s income flow-and yours-could be at risk. Please take a few minutes to learn more about creating a successful business succession plan and preventing potential management chaos.

For more information, contact your Security Mutual Representative.

Today in America Featuring Security Mutual Life Insurance Co. of NY

 

Terry Bradshaw recently hosted a Today in America broadcast featuring Security Mutual Life, its universal life and whole life products and its new chronic illness benefit rider. View the 5-minute Today in America segment and hear what Terry had to say.

Remember to contact your Security Mutual Representative for help with your life insurance needs.

Video Transcript

Your family business is doing well. You have survived the bad times, and flourished during good times. You’re proud of what you’ve done for your family, and rightfully so.

But have you thought things through? What will happen to your family business when your business passes to your son or daughter, or to your sons and daughters? Will the business flourish? Or will it flounder?

According to the Family Business Institute, only 30 percent of family businesses survive to the second generation. And only 12 percent survive to the third generation. That’s the bad news.

The three most common reasons given by families as to why a business failed after passing to the next generation are:

  1. Lack of adequate capital.
  2. Disputes among family members.
  3. Lack of planning.

The good news is that with proper planning, you—the business owner—can provide your business with capital when it is needed most. And you can greatly reduce the potential for disputes between your surviving spouse or, as often happens today, a former spouse and the children from each marriage, as the case may be.

Fortunately, there are some simple and affordable things you can do to greatly increase the odds so the family business can thrive when the next generation takes over.

Ask your Security Mutual life insurance advisor for help with your business succession plan.

Security Mutual Life – Life Insurance – Protection and Savings

 

Did you know your Security Mutual Life insurance policy can also help you pursue your savings goals? Learn more in this 2-minute clip that aired on Today in America with Terry Bradshaw.

Remember to contact your Security Mutual Representative for help with your life insurance needs.

Video Transcript

As a business owner, you know that businesses don’t run themselves. Your oversight, energy and time are necessary to stay on course.

But what happens if you are not at the helm? Is there a plan in place? Is it verbal? Written? Funded?

If you answered “Yes” to verbal, and “No” to written and funded, your family’s income flow and yours could be at risk.

Owners of successful businesses have to know how to solve problems as they come up, and they are good at meeting deadlines.

Speaking of deadlines, while the exact date is unknown, the event of your departure is a certainty. Planning for this event will increase the likelihood of the survival of your business and your family’s lifestyle.

Are you ready to be in business with a spouse or child of your deceased partner? Do you have the money to buy out the family? At what price? On what terms? Where do you get the money? A lending institution? Current business receipts?

The solution is a formal written, funded agreement. It’s better to come to terms with a living partner than with his or her family. Why? Each of you will be thinking like the survivor and the deceased, so the terms should be balanced. Because life insurance is the most efficient way to fund the agreement, it is always worth looking into.

You decide. Is the potential for financial and family chaos an attractive alternative? Is having debt hanging over the business a good thing?

If your answer is “Definitely Not,” then consider a formal, documented—and most important, funded—buy-sell agreement.

Did I mention that the beneficiary receives the life insurance death benefits income tax-free if the agreement is structured properly?

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