Before acquiring a business, professionals must first do some background study on the business entity. Risk assessment is one way to learn about a business, to see what potential risks exist and how susceptible the business is to them. The term “Key Person risk” tops the list of risk assessments. This key individual is someone whose presence is absolutely necessary to the business.
Cindy Fields, the CEO, and founder of Loyalty Alliance is our guest on this episode. She talks about how a company’s “Key Person” influences the entire business entity. She also mentioned the people who are referred to as the company’s key personnel and how businesses have been purchasing Key Person Insurance to reduce the chance of failure during acquisitions. Finally, She offers our listeners some key points and recommendations.
What is the Loyalty Alliance and what do they do?
The importance of Key Person Insurance to M&A
Who usually is the Key Person in a business?
Takeaways and advice from Cindy
“Key person insurance is defined as insurance for an individual at the company. It’s an individual whose job is so pivotal to the company that if something happens to them, the company will be greatly affected.” – Cindy
“I love key person insurance because I love protecting the companies, helping companies grow, talking to the CEOs about their companies and knowing them, and making sure they have the right protective mechanisms in place to achieve what’s important to them.” – Cindy
Featured in this Episode
Christopher Lisle | Linkedin
Growth strategy advisor for the ecosystem of investors, banks, and the companies they work with (middle market).
Websites: Acclaropartners.com / strategicgrowthcouncil.com
Contact: email@example.com / 703-867-7269
Words from our Sponsors
Thanks to our sponsors Acclaro Growth Partners, a strategic consulting firm serving middle market mergers and acquisitions. You can visit acclaropartners.com. Our other sponsor, of course, is Strategic Growth Council, not the podcast, but the Peer Advisory Council slash virtual roundtable slash mastermind group for senior execs and business owners. Contemplating what an acquisition, a sale, or just strategic growth? Strategic Growth Council collaborates with participants in the M&A ecosystem, such as private equity groups, lenders, investment banks, and relevant service providers. Visit strategicgrowthcouncil.com to learn more.
01:46 Our guest’s background
04:38 What is Loyalty Alliance and what do they do?
10:46 How does Key Person Insurance come into play in different situations?
14:07 Who purchases the insurance for that key person?
20:13 The difference between key person insurance versus a typical insurance
23:21 The opportunities and challenges of growing her business
25:56 Takeaways from our guest
28:30 How to connect with Cindy and Loyalty Alliance
This podcast is produced by Heartcast Media.