Business · Shareholders
An agreement is only as good as its funding
Most shareholder agreements describe what should happen on a death, disability or departure. Far fewer identify where the money will come from.
What we look at
Triggering events
Death, disability, retirement, dispute and voluntary exit are treated differently in most agreements.
Valuation method
How the purchase price is determined, and whether it still reflects the business.
Funding source
Insurance, cash reserves, financing or vendor take-back — each has different consequences.
Ownership structure
Criss-cross, corporate-owned or hybrid arrangements each affect tax and control.
Disability provisions
Often the least-funded scenario, and statistically a common one.
Review cadence
Agreements drafted years ago frequently no longer match the business or the shareholders.
Stress-test your shareholder agreement
Bring the agreement. We'll walk through each scenario and where the funding stands.
Shareholder agreements are legal documents prepared by your lawyer. Investco Financial advises on the insurance and funding component only.