Problem Match

Find common challenges faced by privately held businesses and large corporations—solved with insurance and your advice, funded by cash from the MSO.

1. Partnership / Shareholder Buyout Funding

The Problem

Businesses often lack the liquidity to buy out shareholders or protect against financial instability due to a partner’s death. This can lead to ownership disputes, operational disruptions, and financial distress.

 

Impact of Inaction:

Failure to establish a structured buyout plan can lead to ownership disputes, operational instability, and potential legal battles. Without a buyout strategy, businesses may face liquidation, forced sales, or significant financial distress that could endanger their long-term survival.

 

Potential Solutions for Different Business Types:

  • Pay-As-You-Go – Incremental funding strategy to accumulate buyout capital.
  • Sinking Fund – Dedicated reserves set aside for future buyouts.
  • Insurance – Life insurance policies structured to provide liquidity.
  • Debt Financing – Borrowing to finance buyouts when necessary.

Our Solution

 

Privately Held Businesses

  • Solution: MSO + Individual Life Policies Paid by Split Dollar
  • The Operating Company establishes an MSO owned directly by shareholders or a Management LLC owned by the MSO of the shareholders.
  • The MSO provides cash flow for insurance premium payments.
  • The life insurance policy is held in a Trust or SLAT (Spousal Lifetime Access Trust).
  • A split-dollar arrangement is used to provide buyout liquidity, structured to benefit either the Management LLC or MSO of the owner.

 

Large Corporations

  • Solution: MSO + COLI (Corporate-Owned Life Insurance) Guaranteed Issue Life
  • The MSO is established to handle SG&A (Selling, General & Administrative) costs of the corporation’s operating units.
  • Cash flow from the MSO funds COLI premiums.
  • COLI is recorded as an asset on the corporation’s balance sheet, providing liquidity for shareholder buyouts while offering tax-advantaged growth.

 

This is one example of multiple strategies available with GTC and trusted vendors. The final design will vary based on the suitability of the client.

The Problem

Defined Problem:

When key stakeholders transition or unexpected events occur, businesses may lack financial stability to sustain operations, leading to potential disruptions, layoffs, or closures.

 

Impact of Inaction:

Lack of a business continuity plan can lead to severe operational disruptions, employee layoffs, and financial distress in the event of key personnel transitions or unexpected crises. Businesses may struggle to recover, lose market positioning, or even be forced to shut down.

 

Potential Solutions for Different Business Types:

  • Self-Funding – Setting aside internal reserves to maintain business continuity.
  • Business Interruption Insurance – Policies that cover financial losses during disruptions.
  • Insurance-Backed Continuity Plans – Utilizing life insurance to provide a liquidity buffer in times of crisis.

Our Solution

Privately Held Businesses

  • Solution: MSO + Life Insurance-Funded Business Continuity Plan
  • The MSO ensures continued operational funding via structured life insurance-backed reserves.
  • An MSO is structured to service the operating company, which provides cash flow for life insurance premiums.
  • Life insurance proceeds can be allocated to maintain business stability, payroll, and operations.

 

Large Corporations

  • Solution: MSO + COLI for Business Continuity
  • The MSO is structured to service the corporate enterprise, which creates cash flow for insurance premiums.
  • The MSO funds COLI policies that serve as financial cushions for businesses during executive transitions or market downturns.
  • Ensures the company remains solvent while navigating disruptions.

 

This is one example of multiple strategies available with GTC and trusted vendors. The final design will vary based on the suitability of the client.

The Problem

Defined Problem:

If a shareholder dies, their stake may transfer to heirs with no business expertise, leading to leadership conflicts, financial instability, or forced sales.

 

Impact of Inaction:

Without a properly structured buy-sell agreement, a deceased shareholder’s equity could be transferred to heirs with no business expertise. This may result in conflicts, forced sales, or financial hardship for remaining partners, potentially leading to business failure.

 

Potential Solutions for Different Business Types:

  • Self-Funding – Setting aside company funds for unexpected ownership transfers.
  • Buy-Sell Agreements with Life Insurance – Using life insurance to fund buyouts, ensuring control remains with active owners.
  • Third-Party Financing – Allowing external lenders to finance the buyout.

Our Solution

Privately Held Businesses

  • Solution: MSO + Life Insurance for Buy-Sell Agreement Funding
  • The MSO is established to service the operating company and provide cash flow for insurance premiums.
  • The MSO funds buy-sell agreements with life insurance to ensure liquidity for share buyouts.
  • Prevents ownership disputes and keeps the business in the hands of active partners.

 

Large Corporations

  • Solution: MSO + COLI for Corporate Buy-Sell Agreements
  • The MSO is established to service the corporate enterprise, providing cash flow for insurance premiums.
  • COLI policies provide a pre-funded, structured buyout solution.
  • Ensures smooth transitions without financial strain on the company.

 

This is one example of multiple strategies available with GTC and trusted vendors. The final design will vary based on the suitability of the client.

The Problem

Defined Problem:

If a key executive or top performer dies unexpectedly, the company may lose critical revenue, intellectual property, and client relationships, leading to financial instability.

 

Impact of Inaction:

Failure to secure key man insurance exposes the business to severe financial losses in the event of an unexpected executive death. Companies may face reduced revenue, loss of client relationships, and an inability to attract investors or secure loans. The absence of a succession plan could lead to operational disruptions and a decline in market value.

 

Potential Solutions for Different Business Types:

  • Self-Funding – Allocating reserves for emergency replacement hires.
  • Key Man Life Insurance – A policy that compensates the company for lost revenue and recruiting costs.
  • Executive Contingency Plans – Establishing operational transition strategies.

Our Solution

Privately Held Businesses

  • Solution: MSO + Key Man Life Insurance
  • The MSO is established to service the operating company and create cash flow for insurance premiums.
  • Ensures funding for key executive replacement and revenue gap coverage.
  • Structured payouts prevent financial losses from key personnel departure.

 

Large Corporations

  • Solution: MSO + COLI for Key Personnel Protection
  • The MSO is established to service the corporate enterprise, which provides cash flow for insurance premiums.
  • COLI funds are used to maintain business operations and leadership transitions.
  • Reduces market concerns over executive losses.

 

This is one example of multiple strategies available with GTC and trusted vendors. The final design will vary based on the suitability of the client.

The Problem

Defined Problem:

Top employees often leave for better financial opportunities, causing talent gaps, loss of intellectual property, and competitive disadvantage.

 

Impact of Inaction:

A lack of competitive retention strategies can result in high employee turnover, loss of intellectual property, and difficulty attracting top talent. This can weaken business performance, disrupt operations, and give competitors a strategic advantage. Without long-term retention plans, companies may struggle to maintain continuity and sustain growth.

 

Potential Solutions for Different Business Types:

  • Deferred Compensation Plans – Offering long-term incentives that only vest after a set period.
  • Stock Options & Equity Compensation – Providing ownership stakes, but this may dilute existing shares.
  • Insurance-Funded Executive Benefits – Using life insurance policies to finance tax-efficient retention plans.

Our Solution

Privately Held Businesses

  • Solution: MSO + Life Insurance-Funded Executive Benefits
  • The MSO is established to service the business enterprise, providing cash flow for insurance premiums.
  • The MSO funds life insurance policies that accumulate cash value for executive retention benefits.
  • Ensures executives remain aligned with company goals through structured payouts.

 

Large Corporations

  • Solution: MSO + COLI for Executive Compensation
  • The MSO is established to service the operating company and provide cash flow for insurance premiums.
  • COLI structures enable long-term tax-efficient executive compensation plans.
  • Supports deferred compensation and performance incentives.

 

This is one example of multiple strategies available with GTC and trusted vendors. The final design will vary based on the suitability of the client.

The Problem

Defined Problem:

When a business owner passes away, their estate may lack sufficient liquid assets to cover estate taxes, debts, and legal fees. This can lead to forced sales of business assets, disrupting continuity and ownership stability.

 

Impact of Inaction:

Without adequate estate liquidity, business owners’ heirs may be forced to sell company assets or take on debt to cover estate taxes and other liabilities. This can jeopardize business continuity and erode generational wealth. Businesses may also experience leadership voids and financial strain due to sudden ownership changes.

 

Potential Solutions for Different Business Types:

  • Self-Funding – Accumulating cash reserves to handle estate obligations, though this limits reinvestment opportunities.
  • Life Insurance for Estate Liquidity – Using policies to provide immediate cash to pay estate liabilities.
  • Debt Financing – Taking out loans, which may create financial strain for heirs.

Our Solution

Privately Held Businesses

  • Solution: MSO + Trust-Owned Life Insurance
  • The MSO is established to service the operating company and provide cash flow for insurance premiums.
  • In combination with estate planning, a trust is typically established to own an insurance policy outside of the taxable estate.
  • Proceeds prevent forced sales of business assets by covering estate taxes and debts.

 

Large Corporations

  • Solution: MSO + COLI for Estate Planning
  • The MSO is established to service the business enterprise, providing cash flow for insurance premiums.
  • COLI structures ensure corporations do not face financial instability due to shareholder estate liabilities.
  • Provides liquidity for seamless ownership transfers.

 

This is one example of multiple strategies available with GTC and trusted vendors. The final design will vary based on the suitability of the client.

The Problem

Defined Problem:

If a key business partner dies or exits unexpectedly, the remaining partners may face financial and leadership uncertainty, impacting decision-making and business continuity.

 

Impact of Inaction:

If a major business partner exits or passes away without a structured plan, the business may face leadership voids, cash flow disruptions, and potential lawsuits over ownership stakes. This instability can lead to business decline or forced liquidation. Key clients and employees may also leave due to uncertainty, further destabilizing operations.

 

Potential Solutions for Different Business Types:

  • Self-Funding – Setting aside company funds for partner exits, though this may not be sustainable.
  • Buy-Sell Agreements Funded by Insurance – Ensuring structured liquidity for equitable partner buyouts.
  • Debt Financing – Borrowing to repurchase shares, adding financial obligations.

Our Solution

Privately Held Businesses

  • Solution: MSO + Life Insurance for Partner Buyouts
  • The MSO is established to service the operating business and provide cash flow for insurance premiums.
  • MSO funds life insurance to provide immediate cash flow for buyouts.
  • Prevents disputes over equity stakes and maintains operational stability.

 

Large Corporations

  • Solution: MSO + COLI for Ownership Transfers
  • The MSO is set up to serve the corporate enterprise, providing cash flow for insurance premiums.
  • COLI proceeds fund ownership restructuring, maintaining financial and operational stability.
  • Ensures the corporation continues to operate efficiently despite partner departures.

 

This is one example of multiple strategies available with GTC and trusted vendors. The final design will vary based on the suitability of the client.

The Problem

Defined Problem:

Heirs inheriting a business may face large estate tax liabilities with no liquidity to pay them, leading to ownership disputes or forced sales.

 

Impact of Inaction:

Heirs who inherit a business without sufficient liquidity to pay estate taxes may be forced to sell assets or take on burdensome loans. This can lead to the dissolution of a family business or significant financial distress for heirs. Without a structured plan, the business may not survive the transition, affecting employees, clients, and stakeholders.

 

Potential Solutions for Different Business Types:

  • Self-Funding – Accumulating reserves for tax liabilities, but this may reduce growth capital.
  • Life Insurance for Estate Tax Coverage – Ensuring heirs have immediate liquidity to settle tax obligations.
  • Debt Financing – Borrowing funds, which could put additional financial strain on the estate.

Our Solution

Privately Held Businesses

  • Solution: MSO + Life Insurance in Estate Planning
  • The MSO is established to service the operating company and provide cash flow for insurance premiums.
  • The MSO funds permanent life insurance structured to cover estate taxes.
  • Prevents forced business sales due to tax burdens.

 

Large Corporations

  • Solution: MSO + COLI for Business Succession
  • The MSO is established to service the corporate enterprise, providing cash flow for insurance premiums.
  • COLI proceeds are structured to handle estate tax liabilities, ensuring ownership remains within the family or corporation.

 

This is one example of multiple strategies available with GTC and trusted vendors. The final design will vary based on the suitability of the client.

The Problem

Defined Problem:

Unexpected financial gaps, leadership losses, or funding challenges can disrupt M&A deals, leading to deal failures or instability.

 

Impact of Inaction:

Without liquidity planning, M&A transactions can fall apart due to financial shortfalls, regulatory compliance issues, or unexpected leadership gaps. Businesses may miss strategic growth opportunities or face failed integrations, resulting in lost market value and potential legal consequences.

 

Potential Solutions for Different Business Types:

  • Self-Funding – Setting aside reserves for M&A liquidity, limiting capital use.
  • Insurance-Backed M&A Planning – Using insurance to fund buyouts, leadership transitions, and integration costs.
  • Debt Financing – Borrowing for M&A, adding risk and interest obligations.

Our Solution

Privately Held Businesses

  • Solution: MSO + Life Insurance for M&A Liquidity
  • The MSO is established to support or service the operating company and provide cash flow for insurance premiums.
  • MSO funds life insurance-backed reserves for M&A transactions and buyouts.
  • Ensures deals are not disrupted due to funding shortfalls.

 

Large Corporations

  • Solution: MSO + COLI for M&A Structuring
  • The MSO is established to provide services to the corporate enterprise to provide cash flow for insurance premiums.
  • COLI policies provide structured capital for acquisitions, reducing reliance on debt.
  • Ensures financial security during post-merger integration.

 

This is one example of multiple strategies available with GTC and trusted vendors. The final design will vary based on the suitability of the client.

The Problem

Defined Problem:

Many family-owned businesses struggle to transition leadership and ownership to the next generation due to financial limitations, disputes, or lack of planning.

 

Impact of Inaction:

Failing to plan for a generational transfer can result in leadership disputes, forced sales, and the potential dissolution of a long-standing family business. Heirs may be unprepared to manage business operations effectively, causing financial instability and the risk of the company failing.

 

Potential Solutions for Different Business Types:

  • Self-Funding – Gradually saving for transition costs, which may delay succession.
  • Life Insurance for Succession Planning – Using policies to create buyout liquidity for heirs.
  • Buy-Sell Agreements – Ensuring heirs who want to continue the business can buy out others fairly.

Our Solution

Privately Held Businesses

  • Solution: MSO + Life Insurance for Generational Transfers
  • The MSO is established to service the operating company and provide cash flow for insurance premiums.
  • MSO funds insurance policies that provide liquidity for structured ownership transitions.
  • Proceeds ensure active heirs can retain control without financial strain.

 

Large Corporations

  • Solution: MSO + COLI for Family Succession Planning
  • The MSO is established to service the corporate enterprise and provide cash flow for insurance premiums.
  • COLI policies fund leadership transition plans and executive retention.
  • Ensures family business continuity while mitigating financial risks.

 

This is one example of multiple strategies available with GTC and trusted vendors. The final design will vary based on the suitability of the client.

The Problem

Defined Problem:

Many businesses struggle to attract and retain top executives due to inadequate compensation, lack of long-term benefits, or limited incentives.

 

Impact of Inaction:

Without structured executive benefits, businesses may struggle to retain top talent, leading to frequent leadership turnover. This can reduce company performance, disrupt operations, and negatively impact shareholder confidence. Long-term business growth may be compromised without a strong leadership team.

 

Potential Solutions for Different Business Types:

  • Deferred Compensation Plans – Structuring long-term executive bonus payouts.
  • Stock Options & Equity Compensation – Providing ownership stakes, but this may dilute existing shares.
  • Insurance-Funded Executive Benefits – Using life insurance to finance tax-efficient retention plans.

Our Solution

Privately Held Businesses

  • Solution: MSO + Life Insurance-Funded Executive Benefits
  • The MSO is established to service the operating company and provide cash flow for insurance premiums.
  • The MSO funds life insurance policies that accumulate cash value for executive retention benefits.
  • Ensures executives remain aligned with company goals through structured payouts.

 

Large Corporations

  • Solution: MSO + COLI for Executive Compensation
  • The MSO is established to provide services to the corporate enterprise to provide cash flow for insurance premiums.
  • COLI structures enable long-term tax-efficient executive compensation plans.
  • Supports deferred compensation and performance incentives.

 

This is one example of multiple strategies available with GTC and trusted vendors. The final design will vary based on the suitability of the client.

The Problem

Defined Problem:

If a key executive becomes permanently disabled, the company may suffer financial instability, leadership voids, and operational disruptions.

 

Impact of Inaction:

A key executive’s unexpected disability can severely impact business decision-making, revenue generation, and strategic leadership. Without disability protection, companies may face financial strain and struggle to replace top executives quickly, affecting investor confidence and long-term stability.

 

Potential Solutions for Different Business Types:

  • Self-Funding – Setting aside reserves for disability events, impacting business cash flow.
  • Disability Insurance for Executives – Providing income replacement and business recovery funding.
  • Key Person Disability Insurance – Ensuring liquidity to hire replacements and cover revenue gaps.

Our Solution

Privately Held Businesses

  • Solution: MSO + Key Person Disability Insurance
  • The MSO is established to service the operating companies and provide cash flow for disability premiums.
  • MSO funds disability insurance policies to replace lost executive income.
  • Provides liquidity for succession planning and financial stability.

 

Large Corporations

  • Solution: MSO + COLI with Disability Riders
  • The MSO is established to service the corporate enterprise and provide cash flow for insurance premiums.
  • COLI is structured with disability protection riders, ensuring companies avoid financial strain due to executive disability.

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