Surprisingly, over 70% of closely-held businesses have absolutely no plan in place to provide for the orderly transition of the business in the event of the death, disability or retirement of the owner(s). Imagine what would happen if your business suddenly had to continue without you, a partner or key employee. The death, disability or retirement of a key executive causes a number of problems which can be addressed with proper planning.
Consider these questions:
- Who will buy your business?
- How do you place a price value on your business?
- How will a family member buy your business?
- Will the business remain in the family?
- How will other non-involved family members be taken care of?
- Are there capable successors/owners?
These are tough questions for closely held family business owners. Business continuation planning and business valuation are just some of the tools and expertise our knowledge brokers can offer you.
R&R Insurance, in fact, is a great example of a successful perpetuation plan. One thing is for certain, the face of R&R would be much different today if it wasn’t for proper planning.
With a carefully constructed business continuation plan, you can create a solid foundation for the future of your business, and the people who depend on it. Contact our Estate and Business Planning knowledgebroker Tom Driscoll today about how we can help you with your family business succession plan!