What financial planning do business owners need that employees don't?

Business owners face unique complexity: personal and business finances are intertwined, their largest asset is often illiquid (the business itself), and retirement may depend on a successful exit. They also face distinct risks — key person loss, liability exposure, and cash flow volatility. Financial planning must address personal goals and business strategy simultaneously.

What is exit planning and when should a business owner start?

Exit planning builds a business that can be transferred, sold, or wound down to meet the owner's financial and personal goals. It addresses business valuation, retirement funding needs, likely buyers, and tax minimization. Most advisors recommend starting 5–10 years before the intended exit, because the decisions that maximize value take years to implement. Andrew holds the Certified Exit Planner (CExP™) designation.

How should a business owner structure their retirement savings?

Business owners have access to options unavailable to employees: SEP-IRAs, SIMPLE IRAs, Solo 401(k)s, and defined benefit (cash balance) plans. A Solo 401(k) allows contributions up to $70,000/year; a defined benefit plan can allow significantly higher contributions for high earners near retirement. The right structure depends on income, number of employees, and retirement timeline.

What is key person insurance and does my business need it?

Key person insurance is a policy owned by the business on an employee or owner whose loss would significantly harm the company. For small businesses where one or two people drive most revenue, it is a fundamental risk management tool. Lenders often require it.

What is a buy-sell agreement and why do business partners need one?

A buy-sell agreement determines what happens to an owner's share if they die, become disabled, retire, or exit. Without one, shares can pass to heirs with no business experience. A properly funded buy-sell agreement — typically funded with life and disability insurance — ensures surviving partners can buy out the departing owner at a fair, pre-agreed price.

For Your Business — Specialized Financial Planning for Physicians, Families, and Business Owners

For Your Business

Protect. Grow. Exit. — Comprehensive planning for business owners.

Building a business is one of the most ambitious and rewarding things a person can do. It requires sacrifice, vision, and risk — often over many years. And yet for most business owners, the financial planning that should support that work — protecting the business, maximizing its value, and planning a successful exit — is left to chance or addressed too late.

At Altenbach Wealth Management, we specialize in working with business owners at every stage: from protecting what you've built today, to growing enterprise value, to planning an exit that funds the next chapter of your life on your terms.

Andrew holds the Certified Exit Planner (CExP™) designation

• The CExP™ is awarded by the Business Enterprise Institute — one of the most respected credentials in business exit planning.

• It represents advanced training in exit strategy design, business valuation, ownership transfer structures, and the alignment of personal and business financial goals.

• Most financial advisors are not trained in exit planning. Andrew is.

Protect — Safeguard What You've Built

Business owners face risks that employees do not. The unexpected loss of a key person, a dispute between partners, or the owner's own disability can threaten a business that took decades to build. Protecting your business starts with identifying those risks — and putting the right structures in place before they become crises.

Business Protection Strategies

• Key person life and disability insurance

• Buy-sell agreement funding and review

• Business overhead expense (BOE) protection

• Income protection for highly compensated owners

• Business risk evaluation and gap analysis

Why It Matters

• A key person's death or disability can threaten revenue, banking relationships, and business continuity

• Buy-sell agreements without funding are unenforceable in practice

• BOE insurance keeps the business operating during an owner's extended absence

• Owner income is often unprotected compared to employee disability coverage

Grow — Build Value for Owners and Employees

A thriving business should do more than generate revenue — it should build transferable value and create financial security for its owners and key people. Strategic planning around retirement benefits, executive compensation, and employee incentives makes a business more valuable and harder to leave.

Business Growth Strategies

• Qualified retirement plan design and analysis (SEP IRA, SIMPLE, Solo 401k, Defined Benefit)

• Executive and key-person compensation planning

• Deferred compensation arrangements

• Employee benefits strategy and design

Financial Wellness educational workshops for employees

Exit — Leave on Your Terms

For most business owners, the business is their largest asset — and their exit is the most important financial event of their life. Yet fewer than 30% of business owners have a formal exit plan. The result is often a rushed sale, an undervalued business, and a retirement that doesn't match the vision.

We work with business owners to build exit strategies that are designed years in advance — so that when the time comes, you are in control of the outcome.

Why It Matters

• The right retirement plan structure can generate significant tax savings for the owner

• Executive comp and deferred comp plans help retain your most important people

• A well-designed benefits package increases enterprise value at exit

Financial wellness programs improve employee productivity and loyalty

The Exit Planning Process

• Step 1 — Clarify your goals: When do you want to exit? To whom do you want to sell? For how much? What comes next?

• Step 2 — Assess business value: Understand what your business is worth today and what drives that value.

• Step 3 — Close the gap: Identify and implement strategies to increase value and reduce risk before exit.

• Step 4 — Choose your exit path: Third-party sale, ESOP, management buyout, family transfer, or liquidation.

• Step 5 — Execute: Coordinate the legal, financial, and operational elements of the transition.

• Step 6 — Plan what's next: Ensure your personal financial plan supports the life you want after the business.

How our team brings value to you and the steps involved in building a successful exit strategy - Download PDF

Business owners carry financial complexity that employed individuals don't: their personal and business finances are intertwined, their largest asset is often illiquid (the business itself), and their retirement plan may depend on a successful exit. They also face unique risks — loss of a key employee or partner, liability exposure, and cash flow volatility. Financial planning for business owners needs to address both personal goals and business strategy simultaneously.
Exit planning is the process of building a business that can eventually be transferred, sold, or wound down in a way that meets the owner's financial and personal goals. It addresses questions like: What is my business worth today? What will I need from the exit to fund my retirement? Who are the likely buyers — family, key employees, or a third party? How do I reduce taxes on a sale? Most advisors recommend beginning exit planning 5–10 years before the intended exit, because the decisions that maximize value take years to implement.
Business owners often have access to retirement plan options unavailable to employees, including SEP-IRAs, SIMPLE IRAs, Solo 401(k)s, and defined benefit (cash balance) plans. A Solo 401(k) allows contributions up to $70,000/year (2025 limits); a defined benefit plan can allow significantly higher contributions for high earners close to retirement. The right structure depends on your business income, number of employees, and retirement timeline.
Key person insurance is a life or disability policy owned by the business on an employee (or owner) whose loss would significantly harm the company — through lost revenue, the cost of finding a replacement, or loan defaults. Lenders often require it. For small businesses where one or two people drive the majority of revenue, key person coverage is a fundamental risk management tool.
A buy-sell agreement is a legally binding contract that determines what happens to a business owner's share if they die, become disabled, retire, or want to exit. Without one, a deceased partner's shares could pass to their heirs — who may have no business experience and no interest in the company. A properly funded buy-sell agreement (typically funded with life and disability insurance) ensures the surviving partners can buy out the departing owner at a fair, pre-agreed price.

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