It is very likely that your business has multiple owners, but your business is growing. The business relies upon its owners for growth and development. In the event that an owner should pass on, it is critical that the business be protected from the financial impact of that loss. In this scenario, a Buy-Sell Entities Plan can ensure the business continues after the loss of an owner.
Unlike a Buy-Sell Cross Purchase Plan, a Buy-Sell Entities Plan is a business owner life insurance policy, coupled with a comprehensive strategy for when that policy is activated. By creating an agreement, the business itself leverages the deceased life insurance policy to purchase the now vacant shares. This way, the business regains its wealth, a potential plus if the business wishes to be publicly traded in the future.