The Situation:
RevTech/David Coles
RevTech Services, Inc., needed to implement a buy-sell arrangement on behalf of their CEO, David Coles in order to provide for additional liquidity inside the firm in the event of either David’s death or untimely departure from the firm.
The Problem:
RevTech Services, with David Coles at the helm had built a strong business. Coles had generated strong annual revenue growth, expanded the company’s footprint internationally and was the driving force behind many of RevTech’s critical relationships. As the business grew, it became clear that a financial strategy for transition of leadership in the event of Mr. Coles’ death or departure was critical for the future of the business.
The Solution:
Leveraged Planning®
RevTech and Mr. Coles elected to use a life insurance policy to provide the funding necessary to maintain business continuity and provide compensation for Mr. Coles’ interest in the business. A commercial loan from Synovus Life was chosen as the means of funding the policy premiums. Using a commercial loan to fund the life insurance policy premiums enabled REVTECH to reduce out of pocket cash expenditures while still funding the policy sufficiently. Working with Synovus Life meant that RevTech would be provided the benefit of working with a lender with industry-leading loan rates and terms, a broad range of life insurance carrier relationships, deep expertise in the life insurance premium financing field, and a reputation as one of the best banks in the country.
By choosing a life insurance premium financing arrangement funded by a loan from Synovus Life, RevTech saved substantially in upfront business expense, implemented a sound business transition plan, and was empowered to continue focusing on growth and expansion with David Coles at the helm.
