Key Questions to Ask to Identify Buy/Sell Agreement Opportunities

Key Questions for Business Owner Clients During Uncertain Times

During challenging times like the coronavirus pandemic, business owners face increased awareness of mortality and business continuity risks. This creates opportunities for meaningful planning conversations around two key areas:

• Estate planning
• Business continuation planning

The Conversation Framework

Initial Outreach Strategy

1. Contact Existing Clients
   • Maintain open communication
   • Share how you're helping protect other clients
   • Review current protection strategies
2. Re-engage Past Prospects
   • Reach out to contacts from past 3-4 years
   • Ask about decisions they made instead
   • Share current client protection strategies

Key Questions Sequence

Business Structure Questions

1. "Tell me about your business structure"
2. "Do you have business partners?"
3. "What percentage of the company do you own?"

Buy-Sell Agreement Discovery

Instead of asking "Do you have a buy-sell agreement?" use:

1. "Tell me about your buy-sell agreement"
2. "When was it last updated?"
3. "How has your business changed since then?"
4. "What funding mechanism did you choose?"

Common Issues to Address

1. No Buy-Sell Agreement
   • Risk of inheriting unwanted business partner
   • Lack of clear succession plan
2. Outdated Agreement
   • Business growth not reflected
   • Changed circumstances not addressed
3. Unfunded Agreement
   • Insufficient savings for buyout
   • Lack of dedicated funding source

Funding Solutions

Life Insurance Options

1. Term Insurance
   • Basic coverage
   • Lower initial cost
2. Permanent Insurance
   • Better for established businesses
   • Premium financing options
   • Premium funding for high net worth

Advanced Strategies

• Capital split dollar arrangements
• Premium financing
• Premium funding
• Multiple partner structures

CPA Collaboration Process

Getting the Introduction

1. Ask for CPA's name
2. Provide templated email for client
3. Have client forward email and CC you
4. Respond promptly with meeting request

Initial CPA Conversation

Script: "I work with a team of advanced business specialists, but I know you have a strong relationship with [Client]. I understand the frustration when professionals make suggestions without considering tax implications. I'll respect your relationship and consult before implementing any strategies."

Follow-up Steps

1. Review findings with CPA first
2. Present unified recommendations to client
3. Implement agreed-upon solutions
4. Circle back for broader relationship discussion

Best Practices

1. Always get warm introductions
2. Control communication through templates
3. Meet on neutral ground (lunch or video call)
4. Respect existing professional relationships
5. Focus on comprehensive planning
6. Build team-based approach

Implementation Checklist

1. Document current business structure
2. Review existing agreements
3. Assess funding mechanisms
4. Consult with CPA
5. Present recommendations
6. Implement solutions
7. Schedule regular reviews