Focused Financial Group, LLC
Business Planning Services
Business planning at Focused Financial Group helps owners of closely held companies in metro Atlanta answer four questions: what the business is worth, how and when they will leave it, what happens if a partner or key employee dies or becomes disabled, and how the business funds the owner's retirement. For many owners the business is most of their net worth, so these questions sit at the center of the personal plan too.
What is a buy-sell agreement and how is it funded?
A buy-sell agreement is a contract between business owners that sets what happens to an owner's share when that owner dies, becomes disabled, retires or leaves. It names who buys, how the price is set and where the money comes from. Many agreements are funded with life or disability insurance on each owner so the purchase does not depend on the company's cash at a difficult moment. We review existing agreements and help coordinate funding with your attorney and CPA.
What is key person insurance?
Key person insurance is life or disability coverage a business owns on an employee whose loss would hurt revenue or operations, such as a founder, a top producer or the person who holds the client relationships. The business is the beneficiary and uses the proceeds to cover lost income, recruit a replacement or reassure lenders and customers.
When should a business owner start succession planning?
Ideally five to ten years before a planned exit, because the options narrow as the date gets closer. Succession planning covers who takes over (a family member, a key employee, an outside buyer), how the transfer is structured and paid for, and how the owner replaces the income the business provided. Starting early also leaves time to build the value a buyer will pay for.
How do you value a business for planning purposes?
We start with an informal business valuation* that gives a planning estimate and a report summarizing issues and recommendations. It is a starting point for discussions with your tax and legal advisors, not a formal appraisal, and it does not establish a value for estate tax purposes.
What retention tools exist for key employees?
Nonqualified deferred compensation plans and executive bonus plans let a business reward and retain selected employees beyond the 401(k). Each has different tax and funding features, so we review them alongside your CPA.
What we provide
Informal business valuations*
Buy-sell agreement reviews*
Key person planning
Business succession, buy-out and exit planning
Nonqualified deferred compensation and executive bonus plans
Retirement income planning for owners
By collaborating with CPAs, attorneys and consultants, Focused Financial can help provide you with an informal planning report at no cost or obligation. Ongoing, we review and help you update these agreements as your business grows, partners leave or the value changes.
Talk with us
Call 770-250-7588 or use the Contact Us page to schedule a conversation about your business.
*Although a buy-sell review from Principal ® provides a valuable starting point, it does not provide you with a legal opinion as to the legal or tax implications of your agreement or to the appropriateness of any funding strategies. Principal cannot provide you with any legal documents or revise existing legal documents. The valuation will not be a substitute for a formal valuation, nor does it establish a value for estate tax purposes. The review is intended to help identify your objectives for the buy-sell agreement and any issues that must be addressed to help ensure your objectives are being met. The review should be examined by your legal and tax advisors.