Brady and Michael talk with Shawn Garrett, an experienced business law attorney, about the crucial importance of buy-sell agreements in ensuring business continuity and protecting business interests. The discussion delves into scenarios such as death, divorce, disability, disagreement and default that necessitate such agreements, and the significance of proper business valuation and funding. Shawn explains different types of buy-sell agreements, including cross-purchase agreements, and stresses the role of professional planning and expert consultation. Real-life examples underscore the potential pitfalls of unfunded agreements and the benefits of integrating life and disability insurance into business strategies. This episode provides invaluable insights and advice for business owners on drafting, updating, and properly structuring buy-sell agreements to avoid operational and financial chaos.
Key Takeaways:
• Why is it crucial for business owners to have a buy-sell agreement, and what are its key components?
• What are the common pitfalls business owners face with buy-sell agreements and how can they be avoided?
• How do funding and valuation play a role in the effectiveness of a buy-sell agreement?
Key Timestamps:
(00:00) - Meet Shawn Garrett
(00:58) - Understanding Buy-Sell Agreements
(02:52) - The Five D's: Key Triggers for Buy-Sell Agreements
(04:09) - When to Draft a Buy-Sell Agreement
(12:23) - Types of Buy-Sell Agreements
(16:53) - Funding the Buy-Sell Agreements
(20:43) - Real-Life Scenarios: Divorce and Business Ownership
(23:45) - The Importance of Buy-Sell Agreements in Business Continuity
(33:44) - Modifying Agreements: When and Why
Key Topics Discussed:
Financial Fortitude, Genesis Wealth Planning, Brady Hemmerle, Michael Acosta, financial wellness, wealth building, financial psychology, financial advisor, finance therapist, student loan debt, finance guidance for high earners, business owner finances
Mentions:
Website: https://www.genesiswealthplanning.com/
Michael’s LinkedIn: https://www.linkedin.com/in/michaelracosta/
Brady’s LinkedIn: https://www.linkedin.com/in/brady-hemmerle-cfp%C2%AE-75043013a/
Financial Health Checkup: https://www.livingbalancesheet.com/lbsVision/lite/michaelracosta
This podcast is for informational purposes only and is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary. Therefore, the information should be relied upon only when coordinated with individual professional advice. Guest speakers and their firms are not affiliated with or endorsed by PAS, Guardian, or (INSERT DBA or AGENCY NAME) and opinions stated are their own. Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation. All investments and investment strategies contain risk and may lose value.
Michael Acosta is a Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). OSJ: 6115 PARK SOUTH DRIVE, SUITE 200, CHARLOTTE NC, 28210, 704-5528507. Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of The Guardian Life Insurance Company of America® (Guardian), New York, NY. PAS is a wholly owned subsidiary of Guardian. (INSERT DBA or AGENCY NAME) is not an affiliate or subsidiary of PAS or Guardian. CA Insurance License # 0M50974. 6991809.4 Exp. 11/26.
