SERVICE
Business Services
Our Approach
Cash flow is the lifeblood of a successful business. The death of a shareholder or Key Employee can both reduce a Company's revenue and increase its costs, resulting in a double hit to cash flow and profitability. At PH Robb, we help business owners maximize and stabilize future cash flow by creating tax-free liquidity in the event a shareholder or Key Employee dies. Additionally, PH Robb can help business owners structure business succession plans that create long-term sustainability and tax efficiency.
CASE STUDY
An advisor in the PH Robb network worked with a mid-sized engineering company, which recently had a founding shareholder pass away. The shareholder agreement required that the company purchase the shares from the deceased founder's family over a ten-year period, significantly reducing the company's cashflow for ongoing operations. Even more concerning, the company had other large founding shareholders and had no plan to fund their stock redemptions other than cashflow from operations.
After working with PH Robb, the engineering company was able to place life insurance on all its shareholders. Now, the Company does not have to rely on operating cash flow to fund future stock redemptions and can focus on using that cash to grow the business.