Frank and Peter own a growing company, valued today at $4 million. They have a traditional buy/sell agreement calling for a buyout at the death of a partner at current appraised value. Frank dies suddenly just as a major high-profit initiative is beginning. As called for in the buyout, Frank’s spouse receives $2 million.
However, the initiative grows the company to a $10 million value in just two years. Frank’s spouse watches the business grow knowing Frank was the creative driver of that growth, yet she receives no benefit.
Concentrix can show you how a creative coordination of stock recapitalization, life insurance and trust instruments can enable the deceased partner’s spouse to receive the same cash at the partner’s death, but also share in appreciated value of the business – while the remaining partner retains in complete control of the company.
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