Local CEO Speaks About Perpetuation
While nothing is certain but death and taxes, it’s a sure bet many business owners fail to have some kind of perpetuation plan in the event of their death or, more likely, disability.
David Arney, President, CEO and Co-Owner of Akers & Arney in Branson recently spoke at a conference sponsored by Auto Owners Insurance Company and held at the Ramada Oasis Convention Center in Springfield, MO.
As one of three panel members, his comments focused on positive steps agencies can take to pass on their businesses to future generations.
Unfortunately, a lot of people are not planning for the future. They just take it one day at a time,” said Arney.
What happens in the event of the owner’s death, disability or retirement? That’s a question Arney insists must be answered today. “People are generally not pro-active. They are re-active. Even in our own industry a high percentage does not plan ahead.”
That’s where Akers & Arney steps in to guide clients in the development of and to find resources to help create perpetuation plans in concert with the owner that can perpetuate a business on his or her terms instead of someone else’s terms.
Arney and the panel members discussed buy/sell agreements, business vision, funding mechanisms, and determining company value. “Statistics tell us business owners are more likely to be disabled before death. What happens then? Can the spouse or children step up, or should there be a different plan?” asks Arney.
“We talked about “key man” life insurance for the principal with the agency as the beneficiary and owner,” said Arney. Sometimes it is just that simple, other times more complicated plans should be in place.
As risk management advisors, Akers & Arney are professionals who deal with solving problems before they arise. “Perpetuation does not happen magically. It is carefully thought out and instituted by savvy business owners who can see the future,” said Arney.
Akers & Arney is Branson’s oldest risk management/insurance firm, established in 1952 by Branson native Elven Akers. Akers wanted residents to receive good advice on how to best insure their properties and he wanted to see that their claims were handled professionally and in a timely fashion.
In 2000, Akers & Arney became one of the prestigious Sitkins 100™ now Sitkins International, a collection of more than 100 leading insurance agencies in the United States, Canada and South America.
“We understand risk management. We understand perpetuation,” said Arney. “We’re third generation and counting.”
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