Retention of the Business for the Family | Sale of the Business to Co-Owners, Employee or Third Party | Planned Liquidation of the Business

2-minute read

Protect the Business. Provide for the People Behind It.
Your business represents years of work—and an important part of your family’s financial future. Planning for an ownership change means considering not only who takes over, but how the transition will support the people and commitments connected to it.

At Sedway Financial, we bring buy-sell planning into your broader wealth strategy, connecting business continuity with your income needs, family priorities, and long-term goals.

Clarify Who Takes Over—and on What Terms
A buy-sell agreement establishes terms for transferring a business interest when an owner dies, becomes disabled, retires, or leaves under other specified circumstances. Whether the intended buyer is a co-owner, key employee, or another identified party, the agreement should address how ownership will transfer, how value will be determined, and how payment will be made.

Give the Agreement a Funding Strategy
A signed agreement does not, by itself, provide the money to carry it out. We help evaluate cash reserves, installment payments, borrowing, and insurance where appropriate, considering the potential impact on business cash flow and your family’s financial security. Life insurance may help fund a purchase at death, while disability buyout coverage may help following a qualifying disability. Planned departures need funding arrangements suited to their timing and circumstances.

Connect the Buyout With Your Financial Future
The terms of a business transfer should reflect what you and your family will need afterward. We consider your business interests alongside your investments, retirement resources, and other assets, connecting potential buyout proceeds with your income needs, liquidity, tax considerations, and estate objectives. The focus is not simply transferring ownership—it is understanding how that transition fits your life.

Keep the Plan Current as Your Business Evolves
An agreement signed years ago may no longer reflect your business’s value, ownership, or financial circumstances. Regular reviews can help identify gaps between the purchase obligation and available funding. Changes in partners, family priorities, insurance coverage, or business value should prompt a fresh look at whether the arrangements still support your intentions.

Bring Your Advisors Around One Plan
Your buy-sell agreement, business documents, estate plan, and funding arrangements should work together. We coordinate the financial considerations with your attorneys and tax professionals, who guide the legal structure, documentation, and tax advice. Our role is to keep the broader wealth strategy connected to the decisions being made for your business.

Plan the Transition. Protect What Matters.
Whether you need to establish a buy-sell strategy or revisit an existing arrangement, start with a clearer understanding of your options. Let’s explore a plan that supports your business, your family, and the future you’ve worked to build.