Supporting Business Owners and Their Families

Mrs. Rudolph and Mrs. Martin were joint owners of a successful IT consulting firm. Their company was structured as an LLC, and the current plan was to buy each other out when the other decided to retire. if one owner died, the surviving spouse would inherit half the business. Retirement was on the horizon for Mrs. Martin within the next few years. However, Mrs. Rudolph and Mrs. Martin had not taken the time to map out their business succession plan.

Our Approach

  • Step 1

    In our initial meeting, we found that the only step taken was a valuation of the business, which is approximately $1.5 million, and an informal buy-sell agreement.

  • Step 2

    We discovered that the owners never put a formal plan in place for when the other owner passed or retired. We turned our focus to protecting the business, employees, and clients.

  • Step 3

    We learned that no insurance policies were in place to finance the buy-sell agreement, and the LLC agreement had no provision outlining the possibility of an owner’s full disability or divorce.

  • Step 4

    We found that the long-term retention of their employees was equally important, but the firm had no retirement plan or plan to educate new hires if one were to leave.

The Solution

  • We created a plan to address the lack of insurance funding for the buy-sell agreement, provisions to cover full disability and/or divorce of an owner, and the long-term retention of their employees.
  • We helped the clients purchase individual life insurance policies on each other to fund the buy-sell agreement.
  • We arranged a meeting with an attorney to update their existing LLC agreement to include provisions for disability and divorce.
  • We installed a retirement plan that we would manage and monitor for each of their employees, which would be funded through both employer and employee contributions.


  • They implemented their plan and we continued to meet with them throughout the years to monitor their progress and make adjustments along the way.
  • Since both their retirement plans would be funded with pre-tax dollars, this would help enhance their present tax situation by lowering their taxable income.
  • They felt comfortable that their goals were being met and trusted us to continue developing their plan for their ongoing needs.
Two professionals laughing at a laptop

The preceding case study is for illustrative purposes only and may not be representative of the experience of other clients. Actual performance and results will vary. This case study does not constitute a recommendation as to the suitability of any investment for any person or persons having circumstances similar to those portrayed, and a financial advisor should be consulted regarding your specific situation.