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Do You Work with Business Owners?

The Comprehensive Advisor Newsletter

June 2018

Are you currently working with business owners? Do you only handle their investments or are you more comprehensive in your approach? At BluePrint Insurance Services our commitment is to help you be a more comprehensive advisor. To meet this commitment, our goal is to bring simple and actionable ideas that help you increase your revenue and create enterprise value, while providing your client a more comprehensive experience. In this month’s The Comprehensive Advisor Newsletter, we address three key areas for you to incorporate into your discussions. We believe having these types of conversations can be a key differentiator in the marketplace and will lead to deeper relationships and increased opportunity.

What Happens When _____?

Succession planning is one of the most important discussions to have with business owners. What happens when the owner passes unexpectedly? What happens if they become disabled? Or what is the process for them to retire? We find these questions are sometimes not addressed or plans are put in place but never reviewed again. Apart from drafting a buy-sell agreement, there are several financial and psychological factors that must be taken into account. We can provide you a simple list of questions to incorporate into your planning discussions. If you want this list or our more detailed discovery form, please contact us.

Understanding Buy-Sell Agreements

Most people have heard of a buy-sell agreement, but what is it? It is a contract under which each business owner agrees to offer his or her interest for sale to the business, the other owners, or both on the occurrence of certain events such as the owner’s retirement, receipt of an outside offer to buy, or death. The agreement may require the other parties to buy the offered interest or merely give them an option to buy. We can help you review existing agreements or help you take your client through the process to get one started. We have an excellent white paper that discusses this topic. If you would like a copy, please contact us. 

Understanding Key Person Coverage

The planning process will help you uncover potential gaps like key person coverage. Key person risk is the death of an individual whose services are important to a business that will almost always generate considerable losses and costs to the business. Some customers or clients with whom the deceased had a close relationship may not stay with the business, or they may be retained only after expenditures of substantial amounts of effort and money. When the death of a key person is unexpected or sudden, it also creates the significant expense of evaluating and ascertaining the status of works in progress, pending negotiations, and incomplete projects, as well as preparing other individuals within the business to assume responsibility. There also may be significant costs and commissions associated with searching for, finding, and hiring a successor. In the most dramatic situation, the death of a key person may create a void that cannot be competently filled, and the business may fail entirely, leaving life insurance as the only means of replacing the other investors’ capital. Our process helps you ask the right questions to help you uncover and address these risks.

We Want to Help

Did you know that 62 percent of business owners have never had their business valued?  In addition, many business owners assume their business value is “book value” or a multiple of revenue which may not be a fair reflection of market value.  A great place to start with your clients is helping understand the true value of their business. The value of their business along with understanding their needs and goals will help drive their planning. At The BluePrint we work to simplify these conversations.  With the help of our strategic partners we will provide a complimentary informal business valuation to get the process started.  

Helping you is our primary focus. If you would like to review any of the topics above, please contact us at 855.204.6353 or visit us at