Case study #1 – The key employee

Profile:

  • Successful service business – assets are goodwill
  • Success requires ongoing management effort
  • A key employee exists

Objective:

  • Transition ownership to key employee
  • Maintain control until succession complete

Solution:

  • Buy sell agreement funded with insurance in case of “involuntary” exit
  • Client remains in business on salary
  • Ten year buyout