The $7M Business That Sold for $40M, with Thomas Hull

If one person disappeared from your business tomorrow, would it be affected financially? If the answer is yes, you have a key person — and most owners have no plan for it. In this episode, Martin Ochwat and Greg Rozdeba sit down with Thomas Hull, a fourth-generation advisor at Hull Life Insurance, to explain key person insurance: what it is, who needs it, what it costs, and what happens to a business when the person it can't run without is suddenly gone. Thomas shares a real case — a West Coast hospitality owner who died of pancreatic cancer, whose $7 million business survived on the insurance payout and sold for $40 million four years later. What we cover: • The one question that tells you whether you have a key person• What actually happens to revenue, lenders, clients and staff when a key person is gone • How much coverage makes sense — revenue multiples, replacement cost, and the 150–300%-of-salary rule of thumb • The tax mechanics: the corporation owns it, premiums aren't deductible, the payout is tax-free, and money can flow out through the capital dividend account • Term vs. permanent coverage for a key employee • Why a disability can cost a business more than a death • How key person insurance differs from a funded buy-sell agreement • How banks and lenders view a business that has coverage in place. If you're a Canadian business owner with someone whose absence would materially hurt the company, this one's worth your time. Book a free strategy call: dundaswealth.ca/applyKeep What You Build is presented by Dundas Wealth. The content in this podcast is for educational purposes only and does not constitute financial, tax, or legal advice. Always consult a qualified professional before making financial decisions.