The document discusses different types of buy-sell agreements that business owners can establish, including cross purchase, entity, and trustee plans. It explains that a buy-sell agreement helps ensure the continuation of a business if an owner retires, dies, or becomes disabled by establishing a process for the purchase of their ownership interest. Life insurance is often used to fund the purchase and provide funds immediately. The document provides advantages and disadvantages of different buy-sell plans and the roles that life insurance can play in funding each type of agreement. It stresses the importance of properly valuing a business for the buy-sell agreement and IRS standards.
Negotiating the Preferred Stock Term SheetBart Greenberg
This slide show outlines and discusses the key elements of a preferred stock term sheet, and shows the range of negotiability of those terms in the best and worst of times.
Sample Silicon Valley Series A Term Sheet from DLA Piper [SVNewTech]Vinnie Lauria
This is a sample silicon valley Series A term sheet. Presented at the January Silicon Valley New Tech Meetup.
Presented by Brad Rock, partner at DLA Piper.
Full presentation with this sample term sheet are available - http://www.vinnie.net/2010/01/08/silicon-valley-term-sheets-presented-by-brad-rock-at-the-svnewtech/
http://www.dlapiper.com/
Negotiating the Preferred Stock Term SheetBart Greenberg
This slide show outlines and discusses the key elements of a preferred stock term sheet, and shows the range of negotiability of those terms in the best and worst of times.
Sample Silicon Valley Series A Term Sheet from DLA Piper [SVNewTech]Vinnie Lauria
This is a sample silicon valley Series A term sheet. Presented at the January Silicon Valley New Tech Meetup.
Presented by Brad Rock, partner at DLA Piper.
Full presentation with this sample term sheet are available - http://www.vinnie.net/2010/01/08/silicon-valley-term-sheets-presented-by-brad-rock-at-the-svnewtech/
http://www.dlapiper.com/
Model Term Sheet For Alliance Of Angels Finaltepatton
From veteran Dan Rosen. This is a very useful guide on a term sheet that is relatively common in angel investing. Good general guide although terms vary by region and angel group.
Hostile Takeover Strategies with Analysis of Case StudiesPavan Kumar Vijay
Hostile Takeover, acquisition of a business by making unsolicited bids and giving attractive offers to the stakeholders to amass the controlling share and then bid to take control of the business and the management. The acquirer attempts to acquire a business by convincing small shareholders and financial institution of bright future prospects and also give them much larger premium for their shares. This is done to get an upper hand in that specific segment of Industry as well as market by acquiring an established business with proven track records.
How much negative this kind of takeover may look, there are many positive outcomes too. A bid of hostile takeover compels the management to work efficiently, true value of a business comes to fore, shareholders get an opportunity to sell their stake at a good premium etc.
Discussion of how a pension plan sponsor may account for a buy-in annuity contract held as a pension investment. Comparison of buy-in vs. buy-out accounting.
Dividend Policies involve the decisions, whether-
To retain earnings for capital investment and other purposes; or
To distribute earnings in the form of dividend among shareholders; or
To retain some earning and to distribute remaining earnings to shareholders.
The invisible hand didn't cause the financial meltdown. The bogus belief, the bogus "complex" financial system, and the backing by credit rating agency, government, and AIG (and the like) caused the financial meltdown.
Buy-sell agreements are usually part of a succession plan put in place to protect the financial interests of the owners of closely held companies and their heirs and to protect the company’s stability in case of a major event. Funding buy – sell agreements is frequently accomplished using insurance policies under (1) a cross purchase agreement, or (2) a stock redemption agreement.
Cross purchase agreement. Each owner of the company takes out, and is beneficiary of, an insurance policy on each of the other owners. In the event of an owner’s death, the other owners use the insurance proceeds to buy out the decedent’s ownership share in the company from the decedent’s beneficiaries.
Model Term Sheet For Alliance Of Angels Finaltepatton
From veteran Dan Rosen. This is a very useful guide on a term sheet that is relatively common in angel investing. Good general guide although terms vary by region and angel group.
Hostile Takeover Strategies with Analysis of Case StudiesPavan Kumar Vijay
Hostile Takeover, acquisition of a business by making unsolicited bids and giving attractive offers to the stakeholders to amass the controlling share and then bid to take control of the business and the management. The acquirer attempts to acquire a business by convincing small shareholders and financial institution of bright future prospects and also give them much larger premium for their shares. This is done to get an upper hand in that specific segment of Industry as well as market by acquiring an established business with proven track records.
How much negative this kind of takeover may look, there are many positive outcomes too. A bid of hostile takeover compels the management to work efficiently, true value of a business comes to fore, shareholders get an opportunity to sell their stake at a good premium etc.
Discussion of how a pension plan sponsor may account for a buy-in annuity contract held as a pension investment. Comparison of buy-in vs. buy-out accounting.
Dividend Policies involve the decisions, whether-
To retain earnings for capital investment and other purposes; or
To distribute earnings in the form of dividend among shareholders; or
To retain some earning and to distribute remaining earnings to shareholders.
The invisible hand didn't cause the financial meltdown. The bogus belief, the bogus "complex" financial system, and the backing by credit rating agency, government, and AIG (and the like) caused the financial meltdown.
Buy-sell agreements are usually part of a succession plan put in place to protect the financial interests of the owners of closely held companies and their heirs and to protect the company’s stability in case of a major event. Funding buy – sell agreements is frequently accomplished using insurance policies under (1) a cross purchase agreement, or (2) a stock redemption agreement.
Cross purchase agreement. Each owner of the company takes out, and is beneficiary of, an insurance policy on each of the other owners. In the event of an owner’s death, the other owners use the insurance proceeds to buy out the decedent’s ownership share in the company from the decedent’s beneficiaries.
Aviva index universal life insurance crediting interest to your cash valueConnie Dello Buono
Aviva index universal life insurance crediting interest to your cash value..connie dello buono CA Life Lic 0G60621 408-854-1883 motherhealth@gmail.com Greater Bay area
Basics of insurance and investment terms seminar ongoing...
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...beulahfernandes8
The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
1. Buy-Sell Agreements
The Ins and Outs
The Company You Keep®
Establishing a buy-sell agreement is
one of the most important steps you $ $
can take to help ensure the continua-
tion of your business. A buy-sell
Policy on Policy on
agreement can cover a buy-out due B’s Life A’s Life
to retirement, death, or disability, and
helps “peg” the value of your busi- Owner A Owner B
ness for estate tax purposes, so long is the owner and beneficiary is the owner and beneficiary
as the value of the business repre- of a policy on Owner B of a policy on Owner A
sents a fair market value in an arms
length standard of valuation required Agreement
by Section 2703 of the Internal
Revenue Code.1
Problems solved if either owner dies…
There are a number of buy-sell plans
to choose from: the cross purchase,
entity, and trustee plans are among Surviving Deceased Owner’s
New York Life $ Owner
$ Heirs or Estate
the most popular.
Deceased Business Interests
Cross Purchase Plan
The cross purchase plan is one of the
easiest to administer and can be ideal If you use life insurance as a funding when a large discrepancy in the age
for businesses with three or fewer vehicle, the number of policies or percentage ownership of share-
owners. In this plan, the business needed to fund the plan will increase holders exists. In an entity plan, the
owners enter into an agreement with as the number of shareholders shareholders enter into an agreement
one another. The surviving owners increases. The formula is: Total with the business. The business
purchase the deceased or Number of Policies Needed = purchases the deceased or withdraw-
withdrawing owner’s interest. Number of Shareholders x (Number ing owner’s interest. Family and estate
of Shareholders - 1). attribution rules must be considered.
For example, you and your partner
(or co-shareholder) each have an A business with four shareholders Using the previous example, the
investment basis of $50,000. The requires 12 individual policies to fund surviving owner’s original cost basis
business value now is $200,000. Upon the plan. With five shareholders, the of $50,000 will not increase to
your partner’s death, you purchase plan would need 20 individual $150,000 at the death of an equal
the deceased’s share of the business policies. In our example, you need shareholder because the business, in
for $100,000. Your new basis is now two policies; one where you are the essence, buys back the deceased’s
$150,000. If you sell the business applicant, owner, and beneficiary on
years down the road, in this case for your partner’s life—and vice versa. 1
Section 2703 of the Internal Revenue Code applies
to buy-sell agreements entered into after October 8,
$200,000, you realize a gain of only 1990, or substantially modified after this date, and
$50,000. This step-up in basis would Entity Plan applies only to closely held businesses.
result in a lower capital gains tax and,
essentially, reduce your income taxes. The entity plan can be ideal for busi-
nesses with three or more owners, or
2. interest. If the business is later sold
for $200,000, the owner would realize
a gain of $150,000.2
Corporation
As opposed to the cross purchase
Policy on
plan, where 12 policies were required Agreement $ B’s Life
Agreement
for four shareholders, the entity plan
only requires four policies in total. Policy on
The business is purchasing the poli- A’s Life
cies, not the individual shareholders.
Owner A Owner B
Trustee Plan
(or Escrow Agent Plan)
Problems solved if Owner A or B Dies…
Although the trustee plan may be
more cumbersome to set up, it may Deceased Owner’s
provide business owners with the Corporation $ Heirs or Estate
best of both worlds. With this plan, Owners A or B
shareholders have a buy-sell plan Deceased Business
utilizing a trustee or escrow agent. Interests
Each shareholder endorses his/her
stock certificates in blank and delivers
them to the trustee. At the death of the other owners’ lives. The surviving G Insurance proceeds subject to
an owner, the trustee purchases the owners use the life insurance creditors of the business owners.
deceased’s interest. The trustee, proceeds to purchase the deceased
according to the terms of the agree- owner’s interest.
ment, sees that the business issues Entity Plan and Life Insurance
new shares to each surviving owner The business applies for, owns, and
in exchange for the shares that Advantages: pays the life insurance premiums on
belonged to the deceased or with- G Surviving owners receive basis each shareholder’s life. The business
drawing owner. And the trustee, as credit to the amount paid for the uses the life insurance proceeds to
the life insurance policy beneficiary, deceased business owner’s purchase the deceased’s business
sees that the deceased’s estate interest. interest. (Please note that the entity
receives the proceeds. plan is similar to a stock redemption
G Business (C corporation) avoids
possible exposure to the alternative plan.)
How Does Insurance Fit into minimum tax.
Each Plan? Advantages:
G Corporate creditors cannot reach
No matter what you choose, be sure the insurance proceeds. G Premium dollars may be cheaper if
to fund your buy-sell agreement G Corporation can pay premiums if the business is in a lower tax
properly. For many, permanent life treated as additional compensation bracket than the owners.
insurance has been a smart choice. to shareholders/employees (under G Permits the pooling of premium
Insurance is a cost-effective way to a Section 162 Bonus Plan) or under obligations.
ensure that the funds are available a Split Dollar Arrangement.
when needed most. Insurance
G No question arises as to “unreason-
proceeds allow you to purchase the able compensation,” as it could
deceased owner’s share of the busi- Disadvantages: when salaries are increased to pay
ness. Proceeds are available G Plan becomes more difficult to the premiums for life insurance
immediately when death occurs. administer as the number of used to fund a cross purchase plan.
shareholders increases.
Cross Purchase Plan and Disadvantages:
G May cost more to the shareholders
Life Insurance
if the corporation is in a lower tax G State law often restricts redemp-
Each owner applies for, owns, and bracket. tions unless they are from surplus.
pays the life insurance premiums on
The corporate alternative minimum tax (AMT) is a second tax system that applies to quot;Cquot; corporations.
2
It is designed to make certain that all corporations pay a tax in their profitable years. Small corporations
(quot;Cquot; corporations with less than $7.5 million of average gross receipts in the last three years) are not subject
to the Corporate AMT.
3. (Life insurance proceeds provide Advantages: family held) business. First, the agree-
instant surplus.) G Ensures that the purchase will be ment must be a bona fide business
G Surviving owner’s basis in the stock carried out. arrangement. Second, the agreement
of a C corporation remains the must not be merely a device to trans-
G Surviving owners in a cross fer the business interest to family
same, even though the overall purchase plan receive an increase
value of one’s ownership may members for less than full and ade-
in their basis for their newly quate consideration. And third, the
increase. Survivor’s basis is acquired interest.
increased in an S corporation, terms of the agreement must be com-
partnerships or LLC. G Shareholders or corporation may parable to those found in similar
periodically contribute funds to the arrangements entered into by persons
G Corporate creditors can reach the trust so the trustee can pay the in an arm’s length transaction.
cash value of permanent life premiums on the lives of the share-
insurance and policy proceeds. Business valuation is a complex and
holders. specialized task for which the busi-
G Potential accumulated earnings tax G Can avoid multiple required poli- ness owner should consider the serv-
problems may exist. cies in cross purchase agreement. ices of a professional business
G Potential alternative minimum tax appraiser. Accreditation that many of
considerations in a C corporation.3 these professionals may have earned
Disadvantage: would include Certified Public
G Voting power may be altered in an G Higher initial start-up costs may be Accountant (CPA), Certified Valuation
undesirable way. Consider a incurred due to expenses associat- Analyst (CVA), or Accredited in
business where the father owns ed with drafting the buy-sell agree- Business Valuation (ABV).
30%, his son 30%, and an unrelated ment. Your advisors should note
key employee owns 40%. If the that transfer-for-value issues may
business redeems the father’s stock “The Company You Keep®”
arise where there are three or more
at death, the unrelated key stockholders. You can feel secure knowing that
employee now owns a majority of New York Life and its subsidiaries
the outstanding stock and have the products and services to
effectively controls the business. What Value to Use meet your funding needs. Contact
G Constructive ownership (i.e., attri- The value of the business is the heart your New York Life agent today
bution) may result in significant of the buy-sell agreement. It is the and find out why New York Life
adverse income tax consequences. value that the deceased owner’s heirs is “The Company You Keep®.”
will receive, and the surviving
Trustee Plan (or Escrow Agent Plan) owner(s) will pay for the interest. New York Life does not offer tax,
and Life Insurance There is, however, another interested legal, or financial planning advice.
party—the IRS. To this end, the IRS This discussion is intended to be gen-
The trustee is the beneficiary of a has issued some guidance. Rev. Rul. eral and does not cover all possible
life insurance contract on each 59-60 says fair market value is based scenarios or tax consequences. The
shareholder. on the history and nature of the busi- consequences may differ significantly
The trustee collects the proceeds on ness, economic outlook, book value, depending upon the type of business
the decedent’s life and delivers them earning capacity, dividend paying entity involved. Consult your tax,
to his or her estate. The trustee holds capacity, goodwill, and recent sales of legal, or financial advisor before
all shares endorsed in blank, and stock and similar publicly traded making any decisions.
delivers the deceased’s share to the company stock. More recently IRC
other shareholders (cross purchase) §2703 provides the following guid-
or to the corporation (redemption or ance to a fair market value arrange- 3
Life insurance proceeds and inside buildups of
available cash values are included in adjusted cur-
entity plan purchase). ment in a closely held (especially rent earnings for purposes of the corporate alter-
native minimum tax.
4. New York Life Insurance Company
New York Life Insurance and Annuity
Corporation (A Delaware Corporation)
51 Madison Avenue
New York, NY 10010
www.newyorklife.com
The Company You Keep®
SMRU 00319692CV(Exp.02/08)
13625(02/06)