Plan For Continued Success

One of the chief concerns facing owners of family or closely held businesses is how to execute an orderly and affordable transfer of the business to the next generation or a key employee.  Often times the need arises in order to support the owner’s retirement.  Therefore, careful planning must transpire to answer various questions, such as;

  • Who is going to manage the business when you no longer do?

  • How will ownership be transferred?

  • Will your business carry on or will you sell it? 

Succession planning seeks to manage these issues, setting up a smooth transition between you and the future owners of your business.  Unfortunately, sometimes a business succession must occur due to unfortunate events, such as premature death or a long-term disability.  In such cases, a buy-sell agreement is paramount for the orderly transition of that persons absence.

Buy-Sell Agreement

A contract is needed among the owners of a business to provide terms for their purchase of a withdrawing partner's or stockholder's interest in the enterprise.  An owner, partner, or key person may relinquish control in the company for several reasons including death or disability.  Therefore, the agreement establishes a predetermined business price and a buyer for the business interest. Two frequently used forms of buy-sell agreements are:

  • Cross Purchase - Surviving business owners purchase the deceased or disabled owner's share of the business from the estate or the owner for an agreed-upon price.

  • Entity Purchase - The business buys the deceased or disabled owner's interest (also known as a stock redemption plan). The deceased owner's estate or the disabled owner receives an agreed-upon price, with the remaining partners then owning all the business.

Reality: You've worked hard to get your business to where it is. Get what you deserve from it, and let your legacy live on. 

Who is going to take over when your ready to let go?

2020 by WEBB FINANCIAL GROUP. Proudly Created at


Webb Financial Group (WFG) is a registered investment adviser firm offering advisory services in the State of Minnesota and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training. The presence of this website on the Internet shall not be directly or indirectly interpreted as a solicitation of investment advisory services to persons of another jurisdiction unless otherwise permitted by statute. Follow-up or individualized responses to consumers in a particular state by WFG in the rendering of personalized investment advice for compensation shall not be made without our first complying with jurisdiction requirements or pursuant an applicable state exemption.

All written content on this site is for information purposes only. Opinions expressed herein are solely those of WFG, unless otherwise specifically cited. Material presented is believed to be from reliable sources and no representations are made by our firm as to another parties' informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation.

WFG is licensed to sell insurance in the State of Minnesota and may be licensed in others.