1. Buy-Sell Agreements One way & LifeCycle Buy-Sell Agreements
Hardik Shah, CFP®, ChFC® Wealth Manager | Senior Partner
Peter Bradshaw Wealth Manager | Associate
Bill Dolan, Dolan LLC
Channing Schmidt, Advanced Marketing Director
For financial professional use only. Not for use with the public. This material may not be presented in any manner in which it is accessible to the public.

2. Agenda Business Succession One way Buy-Sell Strategy
LifeCycle Buy-Sell Strategy
Cross-Endorsed Buy-Sell Strategy

3. Business succession strategies

4. Business owner top financial concerns:
Business growth – 55%
Retention of key employees – 47%
Recruiting top talent – 46%
Cash flow management – 43%
Financing future growth – 41%
Sale or transfer of the business – 29%
Source: Minnesota Life/Securian, Small Business Owner Life Stage Study, November 2015

5. 1. Source: Minnesota Life/Securian, Small Business Owner Life Stage Study, November 2015

6. Vast majority of business owners don’t have a strategy for exiting the business
Source: Minnesota Life/Securian, Small Business Owner Life Stage Study, November 2015

7. When?
Source: Minnesota Life/Securian, Small Business Owner Life Stage Study, November 2015

8. To whom?
Source: Minnesota Life/Securian, Small Business Owner Life Stage Study, November 2015

9. Business succession – key question
Have steps been identified to transfer the business to others at a fair price?

10. One way Buy-Sell Strategy
One Business Owner

11. One way Buy-Sell Strategy:

12. One way Buy-Sell Strategy

13. One way Buy-Sell Strategy

14. LifeCycle Buy-Sell Strategy
More than One Business Owner – S or C Corporation

15. Typical buy-sell case In addition to focusing on one single purpose
“What happens at your Death?”
Let’s broaden the discussion to what happens during life:
Long term Disability – Long Term Care
Lifetime Departure – Supplement Retirement Income
Business Downturn – Opportunity Reserve

16. Bring permanent life into the client’s buy-sell
Change the conversation
From single purpose – let’s talk about death
To multi-purpose – let’s talk about today, tomorrow (retirement) and death
How to make it multi-purpose?
Using cash value life insurance

17. Four ways a Lifecycle buy-sell strategy helps protect a business
The 4 Ds
If your business experiences a downturn…
If you (or another business owner) become disabled…
If you (or another business owner) depart the business…
If you (or another business owner) die…
If your business experiences a downturn…
You can access cash value in the partnership’s life insurance policies for business needs.
If you (or another business owner) become disabled…
The cash value inside the policies can help cover the buyout cost triggered by a disability.
If you (or another business owner) depart the business…
The cash value inside the policies can help cover the buyout cost or help fund an installment buyout.
In return for the departing business interests in the partnership, the departing partner can take his or her policy out of the partnership.
If you (or another business owner) die…
At death, the death benefit on the policy of the deceased owner is paid to the partnership entity and used to buy out the deceased owner’s business interest in both the business and the partnership.
Policy loans and withdrawals may create an adverse tax result in the event of a lapse or policy surrender, and will reduce both the surrender value and death benefit.

19. LifeCycle Buy-Sell Strategy Set-Up

20. LifeCycle Buy-Sell Strategy Set-Up

21. LifeCycle Buy-Sell Strategy Set-Up

22. LifeCycle Buy-Sell Strategy Retirement of an Owner

23. LifeCycle Buy-Sell Strategy Retirement of an Owner

24. LifeCycle Buy-Sell Strategy Death of an Owner

25. LifeCycle Buy-Sell Strategy Death of an Owner

26. LifeCycle Buy-Sell Strategy Death of an Owner

27. LifeCycle Buy-Sell Strategy Death of an Owner

28. Cross Endorsed Buy-Sell Strategy
More than One Business Owner – Partnership

29. Cross-Endorsed Buy-Sell Strategy

30. Cross-Endorsed Buy-Sell Strategy Set-Up

31. Cross-Endorsed Buy-Sell Strategy Set-Up

32. Cross-Endorsed Buy-Sell Strategy Set-Up

33. Cross-Endorsed Buy-Sell Strategy Death of an Owner

34. Thank you for attending!

35. Please keep in mind that the primary reason to purchase a life insurance product is the death benefit.
Financial Advisors do not provide specific tax/legal advice and this information should not be considered as such. You should always consult your tax/legal advisor regarding your own specific tax/legal situation.
Policy loans and withdrawals may create an adverse tax result in the event of lapse or policy surrender, and will reduce both the surrender value and death benefit. Clients should consult their tax advisor when considering taking a policy loan.
Life insurance products contain fees, such as mortality and expense charges, and may contain restrictions, such as surrender charges. Guarantees are based on the claims-paying ability of the issuing insurance company.
This is for financial professional use only. Not for use with the general public. This material may not be reproduced in any form where it is accessible to the general public.
Securian Financial Group, Inc.
400 Robert Street North,
St. Paul, MN
Insurance products are issued by Minnesota Life Insurance Company in all states except New York. In New York, products are issued by Securian Life Insurance Company, a New York authorized insurer. Minnesota Life is not an authorized New York insurer and does not do insurance business in New York. Both companies are headquartered in Saint Paul, MN. Product availability and features may vary by state. Each insurer is solely responsible for the financial obligations under the policies or contracts it issues.
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