McBride for Business Blog

Updating Buy/Sell Part 4 Disability

May 25, 2017 // R. Shawn McBride // No Comments »

R. Shawn McBride recently spoke on a series about updating your buy/sell, part four. Here is the transcript:

Good morning folks, R. Shawn McBride with you here live, talking about our continuing series on updating your buy/sells and what do you do. If you’ve tuned in earlier, you’ve seen us and we’re talking about buy/sell arrangements and what do we do with these buy/sell agreements. How do we make them advance, how do we make sure that we’ve got the right buy/sells? As I discussed earlier, many business owners have buy/sells that are out of date. It’s a real problem today in the world we’re at because people don’t update these things. They do them one time – they think they file them away, they don’t think about them until something bad happens, and I’ll tell you, when something bad happens, people come running to me, we’ve got a real problem.

If you haven’t seen our earlier videos, go to R. Shawn McBride public page on Facebook, you can see them there, you can see them on our YouTube channel. If you’re updating a buy/sell and you’re looking for that next piece, one of the things you need to deal with is disability. We talked yesterday about death, the fact that an owner could die and we’ve got to figure out ways to deal with that.

Another real possibility is an owner can become disabled, so if you’ve got multiple owners in your business, what happens if somebody gets disabled? Now the truth is, this can put more financial pressure on a business than a death. A death is terrible, if somebody dies, they’re no longer there, we’ve got to figure out how to buy out their estate. And if we don’t put those kind of plans in place, we’ve got a stranger coming into a business. Perhaps a spouse, perhaps children, grandchildren, somebody unusual is coming into the business and the partnership has completely changed.

If somebody gets disabled, we’ve got a double problem. A disabled person probably has medical bills and income needs and they’re expecting to get money from the partnership. But the partnership no longer has the services of that person. They’re no longer there making the calls, dealing with customers, doing the administrative things, providing the skill set that they had originally. In some way shape or form, that partner was helping the business and they’re no longer there. So now we have an income or expense problem, a labor problem as well, so we’ve got a compounded problem. Disability can be a real issue.

We need to have up-front conversations about what are we going to do if one of the partners is unable to work, how are we going to continue the business and how are we going to make it work? These are things to be dealt with up-front. If we wait until these problems happen, we can have a real problem, we can destroy a business. So let’s get these conversations going, let’s talk about them. Let’s put plans in place, whether it be with insurance, time payouts, other things we really want to get ahead of this. This is another issue to get ahead of. If you’ve missed this video series, check out the earlier videos because we’ve kind of been walking through some of this stuff, so we’re going to continue tomorrow. So if you’re new to this, tune in tomorrow but we’ll be talking throughout the series about the different events. If you’ve missed them, go to the R. Shawn McBride public page on Facebook, like it, see the prior videos, go to our YouTube channel on McBride for Business.

If these are the kind of issues that are keeping you up at night, check out the McBride for Business blog, where we talk about these. Love working with groups and organizations that get these things right, whether it be a group of business owners or working one on one with a particular business owner. But if you’re starting to think that your buy/sells aren’t right, let’s start talking about a plan on how to get them right and how to get you to the place you need to be. And one of the things you need to talk about is disability. I’ll be joining you tomorrow, we’ll be talking about another aspect of your buy/sell agreements and more to look out for. Let me know how I can help you, reach out to me, R. Shawn McBride and I’ll be talking to you again soon.

Make sure you download our free checklist to assess your business:

This posting is intended to be a tool to familiarize readers with some of the issues discussed herein.  This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique.  Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity. Steve Knight.


About the Author

R. Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment (, gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can reach R. Shawn McBride at or (214) 418-0258.


Check us out on the web at,

Get Shawn’s latest book:

Add us on Twitter: @McBrideForBus #McbrideForBusiness #3LawsofEmpowerment

Like us on Facebook:





Posted In: Business, Risk, Strategy

Leave a Reply

Show Buttons
Hide Buttons