Fairway Capital provides comprehensive business planning services, ranging from succession planning to buy-sell agreements to key person insurance. 

For business owners, providing for business continuity and succession of ownership is essential.

Succession planning is important to the long-term life of any business, but it is especially important for small- to medium-size businesses. Unfortunately, many privately-held companies fail to create a succession plan, which may increase the likelihood of the failure of the business when the owners retire or die.

Working with your team of advisors (attorney, CPA, investments, etc.), Fairway Capital guides you through a systemized succession planning process.  This process is aimed at meeting your business’s needs as well as your personal interests and goals, both short- and long-term.  

Life insurance policies can provide funding for buy-sell agreements or to buy out a family member who is not interested in participating in the business.  A major advantage of insurance is that it is the only funding tool that can be estate and income tax-free.  In conjunction with your other business advisors, Fairway Capital designs policies that take into account any legal, financial, tax and technical issues that are specific to your business.

Key person life insurance is typically an important aspect of business planning, as it helps the business survive the loss of a key person.  In a privately-held business, this insurance is usually for the company executives. This type of insurance is necessary for the people who are crucial to the ongoing success of the business, in whose absence the company’s performance and value would decrease.  The mechanics are relatively simple in that the company purchases a policy, pays the premiums, and is the beneficiary of the policy. If that person unexpectedly dies, the company receives the insurance benefit.  The company can then use the insurance proceeds for expenses until it can find a replacement person, or to reduce debt or pay investors.  In a tragic situation, key person life insurance offers management options other than immediate bankruptcy, and if necessary, to pay severance to employees and close the business in an orderly manner.

For more information and inquires to see how Fairway Capital can help you, contact us today.

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