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Succession Planning

Choosing the Right Funding Method

The type of funding method you choose for your buy-sell agreement depends on several factors, including:

  • The size of your business
  • How your business is structured
  • Your business tax bracket
  • How many owners/partners have a share in your business, and their ages, tax brackets, and ownership percentages
  • How much cash or credit is available to the business or business owners
  • How your buy-sell agreement is structured

Depending on how your business is structured and run, you may choose a single funding method or use several in combination when creating your buy-sell agreement.

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First Commonwealth Bank and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.