Buy-sell & key person funding · Lehigh Valley

Your agreement says who gets the business. It doesn't say where the money comes from.

Most closely held companies have a buy-sell agreement drafted years ago and never funded. When an owner dies, the bank freezes the credit line, the surviving partners are obliged to buy shares they can't afford, and the personal guarantees land on a family that never signed up for them. Work out your number below — it takes about a minute.

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What is actually at risk

Three bills arrive at once

Owners tend to think about one of these. It's rarely the expensive one, and they almost never arrive separately.

The buy-out

Your agreement obliges the surviving owners to buy your share. If it was never funded, they borrow at the worst possible moment — or your family ends up holding equity in a business it can't run and can't sell.

The key person gap

The relationships, the bids, the customers who only answered because it was you calling. That profit walks out with you and takes two to three years to rebuild, if it rebuilds.

The personal guarantees

Equipment notes, the credit line, the building. You signed personally, so the debt doesn't die with you — it passes to your estate, in the same week the bank pulls the line.

Your number

What happens if you die tomorrow

Pick the closest business type, then adjust. Nothing is sent anywhere — this runs entirely in your browser, and no one sees the result unless you choose to talk to me.

The business
What a buyer would pay today. Unsure? Use 3× to 5× annual profit.
50%
Used to size what the business loses while it replaces you.
60%
Your relationships, your bids, your book. If you vanished, how much walks out with you?
2 yrs
Debt and coverage
Equipment notes, the credit line, the building. These do not die with you.
Only policies owned by or payable to the business. Personal coverage is your family's, not the company's.
You
48
Unfunded exposure
$0
Buy-out obligation Key person loss Personal guarantees
Buy-out obligation
$0
What your partners must produce in cash to buy your share from your family.
Key person loss
$0
Profit the business forfeits while it rebuilds what you carried.
Personal guarantees
$0
Your share of guaranteed debt, which passes to your estate.
The arithmetic
LineAmount
Buy-out obligation$0
Key person loss$0
Personal guarantees$0
Coverage already in place$0
Unfunded$0
Estimated cost to fund it
$0
Why waiting costs more
Total exposure Coverage in place
What actually happens
The fix

Funded in advance, none of it happens

The money arrives from outside the balance sheet on the day it's needed. No borrowing, no forced sale, no equipment going out the gate to settle an estate.

Cross-purchase or entity redemption

Each owner insures the others, or the company insures everyone. Which one is right depends on how many owners you have and what your CPA says about basis — that's a conversation, not a form.

Key person coverage

The business owns the policy on the person who drives revenue. Proceeds bridge the gap while you replace them, and lenders and sureties like seeing it on file.

Guarantee wipe-out

Coverage sized to the debt you personally guaranteed, so it's cleared rather than inherited. This is usually the cheapest piece and the one nobody thinks of.

Book your call

Fifteen minutes. Real numbers. Zero pressure.

I'll look at your actual agreement and tell you whether it's funded. If it already is, I'll say so and leave you alone — I'd rather be the person you call in three years than waste your afternoon today.

Get my numbers — 15 min