Business Advisor Partners
As a trusted Business Advisor, you’re uniquely positioned to recognize the risk your client’s business would be exposed to in the event of losing a critical owner or key person due to death or disability without warning. An estimated 70% of business owners report that their revenue is dependent on a small group of individuals, yet only 22% of small businesses have key person insurance, and only 15% have a properly funded Buy-Sell Agreement in place. This risk gap leaves even the most successful companies extremely vulnerable to disruption.
Structured correctly, Buy-Sell and Key Person Insurance do far more than provide immediate, tax-free liquidity at a moment of crisis. They enhance a company’s attractiveness with investors and lenders, ultimately leading to a higher valuation. Proactively addressing these risks provides partnered Business Advisors a way to differentiate your practice, deepen client loyalty, and most importantly provide more comprehensive business planning for your valued clients.
Strategic Alliance Wealth Group extends that protection even further with executive compensation strategies designed to recruit, reward, and retain top talent. In today’s labor market, where 62 percent of business owners cite attracting and keeping top performers as their greatest challenge, selective, tax-deductible, vested plans can give your clients a way to stand out in the talent pool and create happier, more loyal employees.
Once the risk gap for the business has been significantly reduced, our Lifestyle & Legacy Planning process evolves to the personal planning of the business owner and key executives. When planning for their eventual transition out of the business, we provide tax-advantaged strategies for a portion of the exit and retirement proceeds that protect, grow and preserve the personal wealth of the business owners, key executives and their families. We then turn to the estate, where we provide a tax-free death benefit, outside of the estate, avoiding probate and estate taxes. Working together, we can turn successful business transitions into a lasting, tax-free legacy, providing financial security for generations to come.