Business Protection & Succession Planning:
Think About This: Less than 7% of the 21.7 million business owners in the U.S. have a plan of attack such as life insurance protection for the smooth continuation of their business upon their death or retirement.
Having a plan in place protects the future of your business.
- In a small business, the owner is not the only stakeholder. Co-owners, employees and clients may be affected when an owner retires, becomes disabled or dies. Planning ensures that the business that has been created can continue.
A buy-sell agreement—a formal agreement that arranges for the purchase of the business upon the occurrence of certain events—is often a good strategy. A well thought out, adequately valued and funded buy-
sell agreement can:
• Assure a buyer for the business
• Assure the business owner’s family a fair value for the business while reducing the costs and delays of probate
• Reduce the risk of a proposed assessment from an IRS audit
• Spell out the terms of the buyout, which can be funded with life insurance
• Provide a smooth transition of complete control and ownership
• Assure business continuity
Once you've learned the basics you might consider attending a free workshop, or taking advantage of a free business succession planning consultation.