Case study · Business owners

How a plumbing contractor planned his exit on his own terms

A growing company, three kids who did not want the business, and a key employee ready to buy. We built the plan that let everyone get what they wanted.

Company revenue
$4.8M / yr
Key employees
1 buyer
Planned exit
4 years

The problem

Our client (we'll call him Mike) grew a plumbing company from a single truck to a team of 18. His three kids had other careers. His lead foreman had been with him 12 years and wanted to buy the business.

Mike needed a plan that paid him fairly, was tax-aware, transferred ownership cleanly, and did not blow up his retirement or estate.

What we did

We built a staged buyout structured over four years, combining installment payments from the buyer with a seller-financed note and insurance-backed completion if Mike died mid-transition. On the estate side, we built a trust designed to receive the buyout proceeds and pass them to his children.

The result

Mike exited the business on his planned timeline with predictable payments, the foreman took ownership without a bank loan he could not qualify for, and Mike's family has a clear path to inherit the remaining note if he dies before it pays out.

What this plan included

Installment sale agreement
Seller-financed promissory note
Completion life insurance
Pays out the remaining balance if he dies mid-transition.
Revocable trust
Structured to receive payments and pass them to the children.
Operating agreement assignment
Updated powers of attorney

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