March 13, 2026|
8 min read
Many family-owned businesses don’t stay in the family once the original owner is no longer involved, not because of poor planning, but because the next generation isn’t interested in taking the reins. When that’s the case, having a strategy in place, such as buy-sell agreements supported by key person insurance, becomes even more critical. Without a clear succession plan, the business may lose value, face operational disruptions or be sold under pressure, often for less than it’s worth. Key person insurance can help protect the value of the business and ensure you and your loved ones are financially prepared when it’s time to sell or transition.
If you’re a business owner, especially one with a family-run operation, it’s essential to plan to protect your legacy and ensure your loved ones receive the full value of your business.
What happens when your children don’t want the business?
It’s common for children of business owners to pursue different careers. If your heirs aren’t interested in taking over, you may be fortunate enough to have a key employee who is passionate about continuing the business. But even then, a major challenge arises: Can they afford to buy the business at a fair price?