Experience matters when it comes to avoiding risk

Although my focus is helping business owners build value in their companies to optimize sale or succession outcomes, I have 40  years of experience in the insurance business. Because of this mix of experience, I was asked to present to a group of senior advisors in the Growth & Transition Capital financing team at BDC.  The topic: Working with Strategic Succession to simplify the risk management process for lenders when business owners’ assets are insufficient as security and they don’t want to trade equity for cash. Both lenders and business owners can benefit from a deeper understanding of how this process can work. And, how working with an insurance advisor with deep connections to underwriters can save time, money and headaches.

In brief: Simplifying the risk management process

When companies are in growth mode and want to take advantage of various financial instruments to fund expansion, acquisition or improve operations, risk is involved. Underwriting the debt through insurance provides security for the lender that their debt will be paid. This solution provides an alternative to equity financing or using personal assets as collateral.

Why 40 years matters

Business is based on relationships and insurance is no different. Because I have been working with leading insurers in Canada and the US for 40 years, my firm has deep expertise in what insurers need. We have all the documentation so that processing takes less time. I understand and know underwriters, so meeting their requirements and negotiating best rates is seamless. Even with tough credit situations, deals can get done.

Benefits of capital insurance for the business owner set up through Strategic Succession:

1.      Removes uncertainty

2.      Allows for a better rate from the lender

3.      Tax deductible – if structured properly


Benefits for the lender in working with Strategic Succession:

1.      Removes risk

2.      Satisfy all requirements to approve the loan

3.      Personal relationship with underwriters in Canada and US

4.      We can cut approval times in half

5.      All documentation requirements in-house


Every situation is different so every plan is different

There are many ways to structure a risk reduction strategy. In my work over the years I have created custom plans that can allow for tax benefits and reduced risk (and stress!) securing better rates from lenders for business owners needing capital.

Learn more

If you are interested in learning more about this topic and how I can help owners, contact me. If you have a group you are aligned with and you are interested in a presentation on this or other topics contact us for more information.