The Four Amigos and the Business Lesson That Came Too Late
The Four Amigos and the Business Lesson That Came Too Late
By Noah B. Rosenfarb, 3rd Generation CPA & Founder of www.Wealthrive.com
In high school, they were inseparable—Kenny, Andy, Mark, and Ron. Known around town as the Four Amigos, they shared everything: laughter, ambition, and a legendary Spring Break trip to Florida’s Panhandle, where Kenny, ever the charmer, convinced a group of college girls that he was the son of a big Hollywood producer. With his dad’s cheap camcorder in hand, he even filmed “screen tests,” much to the delight—and disbelief—of his three pals.
But as often happens, adulthood sent them on different paths. Kenny, the brightest of the bunch, landed a full ride to Duke, went on to med school, and became a respected family physician. The others took a more winding road, eventually launching a furniture business out of Andy’s garage, repurposing throwaways from curbside pickups. Kenny later lent them the seed money they needed to grow.
That loan turned out to be one of the smartest investments any of them ever made. Over 15 years, the friends built a thriving manufacturing company with over 100 employees and more than $70 million in annual revenue.
Then came the phone call that shattered everything.
A Tragedy, and a Wake-Up Call
Kenny had been volunteering with Doctors Without Borders in Honduras when disaster struck. On the way to assist after a deadly mudslide, the Jeep he was riding in skidded off a muddy road. It flipped down an embankment. Everyone else survived without a scratch. Kenny didn’t.
He broke his neck and died instantly. He was just 38.
The funeral was heartbreaking. Kenny’s wife was left not only mourning her husband but facing a mountain of unfinished business. Kenny had no will. No succession plan for his practice. No life insurance. It was a mess—and it devastated her.
For Andy, Mark, and Ron, the experience was sobering. It forced them to consider what would happen to their own business if one of them died. That question became more pressing when, shortly after Kenny’s death, their banker told them they’d need a formal business continuity plan in order to qualify for an increased line of credit.
“Something like a buy-sell agreement might be your best bet,” the banker suggested.
“Can you draw one up for us?” Andy asked.
“No,” the banker replied. “But I know someone who can. Go see Noah…”
The Life Cycle Buy-Sell
When the Amigos met Noah, they laid it all out.
While they were wealthy on paper, the three men had poured almost every dime back into the business. Their salaries were modest, their retirement savings thin, and only Andy had even attempted an estate plan—nearly a decade earlier.
“To tell you the truth, this kind of stuff isn’t our forte,” admitted Ron. “We really don’t want to spend much time, energy or money on it. Is there an uncomplicated way to do this and make our banker happy?”
There was.
Noah proposed a life cycle buy-sell agreement funded by life insurance. If any one of them passed away, the policy would provide the liquidity to buy out the deceased partner’s share—no scramble, no chaos, no disruption. But there was a catch.
They’d each need a $10 million policy. And the premiums? Let’s just say they weren’t budget-friendly for a company always hungry for working capital.
That’s where Noah got creative. He brokered a deal with the Amigos’ bank to borrow the funds needed for the premiums at a favorable rate.
“Not only will you be covered if anything happens to one of you,” explained Noah, “but these policies will also build significant cash value over time. When you’re ready to retire, you’ll have a source of tax-free income.”
They also brought in an attorney to draft fresh estate plans tailored to each partner’s personal goals and family needs.
“I was skeptical when you told us how you were going to help,” Mark admitted. “But I’m so glad we did this.”
Business Smarts Means Planning for the Unthinkable
If you’re a business owner, this story should sound familiar. Maybe you’re building something meaningful. Maybe you’re too busy running operations and chasing growth to think about worst-case scenarios.
But if tragedy struck tomorrow, would your family be protected? Would your business survive? Would your partners know what to do?
For the Four Amigos, the answer—once upon a time—was no. And it nearly cost them everything.
But they got a second chance. Not every business owner does.
So here’s the takeaway: Get your buy-sell agreement in place. Revisit your estate plan. Fund what you can, insure what you can’t. Because success isn’t just about building—it’s about protecting what you’ve built and living Rich Beyond Money.
