- You are unable to work or participate in your business for an extended period of time?
- Do you have partners or management who will be able to oversee the business?
- Is there a plan to manage any major loss of revenue due to your unavailabilty?
- A key employee is disabled or dies?
- Will there be resources to replace that employee, especially if revenue declines?
- Have a buy-sell agreement with your partners?
- Is there a plan to fund a buyout?
- Have a management succession plan?
- Have a method of business valuation?
- Is there a periodic updating or testing of this?
- Have a plan to sell or bequeath the business upon death or retirement?
- Is the buyer or successor capable and qualified?
- What will the tax implications and issues be?
- Is there a funding strategy in place?
Unfortunately these things do happen. Unforeseen events that affect the health of an owner or key employee can throw even the best run business into turmoil. We can help you plan for and manage the risks of death or disability to an owner, partner, or key employee. We can assist you with identification of the risks, perils and opportunities you face and develop strategies for action.
Most closely held business owners have a significant portion of their net worth tied up in their business. It is critical to get this right, very often you don't get a second chance.