Will The Right Funding Be There When Needed?

Will The Right Funding Be There When Needed?

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Many music retailers tell me they have a buy-sell agreement. That is they have a good idea of who they want to eventually sell their business to. Fewer have the agreement in writing, and even fewer have it correctly funded.

Having a written buy-sell agreement in place is at the heart of a SUCCESSFUL business transition plan. However, if that agreement is NOT funded, business owners can be left in a vulnerable position in the event of unplanned events such as : Divorce, Death, Disability, Disagreement, Departure.

Typical funding sources include: Cash- Borrow-Savings-Installment Sale-and Insurance.

Below, you’ll find a quick summary. Let me know if you have any questions.

Source: The Principal Financial Group

Principal Infographic- will the right funding be there when needed

 

 

Infographic part 2 Princiapl funding when you need it

Written by Jaimie Blackman

Jaimie Blackman

Jaimie Blackman has created Sound Financial Decisions ™ powered by MoneyCapsules®, to help guide business owners through the complexities of succession planning.

Jaimie writes “Smart Succession”, a monthly column in Music Inc., and also writes a bimonthly column for Canadian Music Trades magazine. He has spoken at NAMM U Idea Center, and at Yamah’s Succession Advantage.

As a financial literacy educator he has taught at New York University and has lectured at the 92nd Street Y, Marymount Manhattan College, and CUNY.

As President of BH Wealth Management, Jaimie also helps his clients implement investment and insurance solutions which are aligned to their personal values. Visit bhwealth.com to learn more.

To subscribe to Jaimie’s Succession Success: Insights for Music Retailers, visit moneycapsules.com.

The purpose of this post is to educate. Our content should not be construed as advice. If legal, tax or other advice is required by the readers, professional advice should be sought.

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