Protecting the exit flight path
An Electronics firm with unique IP. The strategic plan was to establish the IP’s market position and achieve a trade sale within 3-5 years.
The two key Owner Directors were long term business partners and still owned the majority of the shares.
The Owner Directors agreed that, were they to die, they would wish their families to have a large cash lump sum, rather than the stress of waiting for an exit. However, the surviving Owner Director would have to re-double his efforts to keep momentum.
After a complex and prolonged underwriting which reflected specific health issues, FAB obtained insurance on a business valuation of £10m.
This had a short dated component, to reflect the intended exit, with a long dated element for backstop family protection.
Sums Assured: £9 million
Lives Assured: 3