The $4 Million Handshake That Almost Destroyed Everything
- Harry T. Jones
- 6 days ago
- 3 min read
“Without counsel plans fail, but with many advisors they succeed.” — Proverbs 15:22
It all started with a dream.
The truck’s faded paint and squeaky doors told the story of Elliott and Joe’s humble beginnings—two friends with borrowed money, used tools rattling in the back, big dreams echoing in their hearts, and the smell of sweat marking every mile.
Within a few years, the sweet scent of success replaced the smell of struggle. One truck became a fleet. Two men became a full crew. Their small startup transformed into a $4 million enterprise built on sweat equity and loyal customers.
But they never heard the ticking clock of mortality over the hum of their growing business. They couldn’t see the storm clouds gathering on their horizon.
Elliott was diagnosed with stomach cancer. He lost the fight and was gone in six months.
There was no time to make a plan. No time to come up with a buy-sell formula.
Now, with Elliott gone, Joe faced an impossible situation.
Joe paid the price for what I describe in my new book Succession Planning for Impact Workbook as succession planning pitfall #2.
Pitfall #2: Failure to Plan, Update, and Share Succession and Buy-Sell Agreements with Stakeholders
Elliott’s heirs just wanted a payout.
Quickly.
His partner’s beneficiaries held all the cards. Their basic agreement offered no valuation formula, no protection for the surviving partner, and no path forward that didn’t risk destroying everything they’d built together.
A buy-sell agreement is like a will for your business that answers one critical question: “What happens to the business if something happens to me—or my stockholders?”
Without it, you leave your business—and your family—vulnerable to confusion, conflict, and even chaos.
>>> You don’t have to face the challenge of business transitions alone. <<<
The weight of grief pressed heavily on Joe’s shoulders as Elliott’s family pressed for immediate decisions. The business they’d built from two used pickups and weathered tools now teetered on the edge of collapse.
The banker pressed for answers. The accountant required direction. And Joe needed clarity he couldn’t find alone.
That’s when an outside voice became his lifeline.
Through careful analysis and compassionate guidance, a team of advisors helped Joe understand what the business could realistically afford while remaining viable. Hour by hour, meeting by meeting, they:
Mediated conversations between Joe and Elliott’s families
Worked closely with the banker to structure manageable terms
Collaborated with the accountant to determine sustainable payment schedules
Created a path forward that honored both Elliott’s memory and the business’s future
What seemed impossible became manageable.
The 15-year mortgage Joe took to buy out Elliott’s family’s share? He paid it off in just three years—a testament to the power of guided determination and clear-headed planning.
Is Your Business “Naked”?
Ask yourself these hard questions:
If a key partner or owner passed away suddenly, what would happen next?
Who would own their share of the company stock?
How would the business be valued?
Could the business afford the buyout?
If you don’t have clear answers, you’re operating “naked”—exposed to the same crisis that nearly destroyed Joe.
The Path Forward
To avoid Joe’s near-catastrophe, you must:
Engage an Attorney and CPA to establish a clear valuation formula (EBITDA Multiple, Book Value, Revenue Multiple, or Discounted Cash Flow Analysis)
Plan for Funding through life insurance, seller notes, or company financing
Share the Agreement with partners, family members, key employees, and trusted advisors—because transparency builds trust and minimizes disputes
BEWARE: DIY valuations can lead to significant inaccuracies because of missing critical factors, emotional bias, and a lack of market knowledge.
Don’t Wait for the Storm Clouds
As Benjamin Franklin said, “By failing to prepare, you are preparing to fail.”
Joe’s story had a positive ending—but imagine how different his journey could have been with proper planning and earlier outside guidance.
It’s not just about protecting your business. It’s about preserving relationships, securing legacies, and ensuring your life’s work continues to make an impact for generations to come.
Tomorrow isn’t guaranteed. Begin the crucial conversations now.
Ready to Protect Your Legacy?
The Succession Planning for Impact Workbook gives you everything you need to solve Pitfall #2 before crisis hits:
✅ Discussion Questions like “What lessons can we learn from Elliott and Joe?” and “If a key partner passed away suddenly, what would happen next?”
✅ The Pitfall #2 Checklist to ensure your buy-sell agreement is complete, current, and shared
✅ Step-by-step guidance on valuation formulas, funding mechanisms, and stakeholder communication
Don’t let your $4 million handshake become a nightmare.
What’s stopping you from having the buy-sell conversation with your partners? Drop it in the comments.
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