What if you don’t make it home from work? Where does that leave your significant other? What if something happens to your financial or business partner? What about their spouse? Engineers usually don’t take time to think about such things. Today, Toby Mathis of Anderson Business Advisors talks to Dwain Blake of Canyon Ridge Group, a wealth management firm. Dwain is a buy-sell agreements and key man policies expert. Also, he specializes in partnerships for small business owners as a senior consultant at Anderson Financial Services.

Highlights/Topics: 

Like Father, Like Son: Dwain was a petroleum geologist and then an environmental scientist; his son took over the engineering side of the family business

Progression of Business and Owner: Dwain sold his company in 1997 and signed a non-compete clause

Opportunity Knocks: Dwain could do something different for a few years, or be sidelined and count the few dollars received from selling his business

Financial Services World: Dwain invested the money from his business into Pittsburg markets with a Fortune 100 group

Buy-sell Agreement: If something happens to a partner, it details how assets are distributed, bought, and sold to successors/spouses; one agrees to buy out the other

Buyout: Set amount can be reviewed and revised, depending on company growth and profitability; partner(s) is contractually obligated to purchase stock at a set value

Insufficient Funds: Partner(s) needs cash to buy out and continue to operate; if they don't have enough cash available, funding usually comes from life insurance

Protect Partner and Investment: How am I going to keep the company going, if I'm only the investor? How am I going to make sure that I protect my investment? How can I make sure the company is transitioned? 

Key Man Policies: Specific internal/external people/managers in place to handle different divisions and extra life insurance to go to surviving partner(s) for buyout and hiring talent

One Policy, Two Types of Coverage: What if your partner gets hit by a truck and becomes disabled or dies? Life and disability insurance can be combined 

Corporate Succession Planning: Traditional and obvious obligations depend on deeper partnerships, solid investors, hard money lenders, and others

New Policies, Never Ends: Insurance doesn’t stop with the sale of the first policy; as business grows and moves, partners succeed their shares, sell their shares, etc. 

How much is recommended? $50,000 is minimum life insurance value with any company

Document and discuss your desires before death or disability: it's easy when you're alive and healthy; don’t do this type of planning from the hospital bed when it's too late

Retirement Planning: Prepare for the retirement you definitely deserve; but if something happens, make sure your family gets a big chunk of cash and your business survives

Resources

Dwain Blake 

Dwain Blake’s Mobile: 912-856-5007

Canyon Ridge Group

Toby Mathis

Anderson Financial Services

Anderson Advisors

Anderson Advisors Tax and Asset Protection Event

Anderson Advisors on YouTube