Exit Planning – Contingency Planning
How will the business go on?
There are four “D’s” to consider when evaluating business continuity options:
• Death – permanently out of business
• Disability – unable to perform
• Divorce – partners stopped loving one another
• Disinterest – a partner burns out
For both your financial health and your physical health…”An ounce of prevention is worth a pound of cure.”
On the way to leaving the business (your final act as a business owner), a thousand small details can derail the most carefully made plans.
Forecast Strategic Advisors will see that you’re prepared years in advance for every contingency and make sure that you’re able to manage all of the large and small risks you’ll inevitably face.
For example, do you have a well-written buy/sell plan that covers all of the contingencies between you and your business partner, shareholders, or family members? When was it last reviewed? What value has been reflected in the agreement? A well-crafted agreement can save an enormous amount of trouble and financial costs if conflicts ever arise. And what happens in the case of a key individual’s disability or death? Will your assets be protected from creditors?
Sole owners…who is your likely buyer in the event of one of the Four D’s? Do you have “stay bonuses” to keep your key employees when your business is transitioned to a new owner? Does anyone know “in writing” exactly what is to be done with the business in the event of an untimely disability or death?
We have helped many business owners and executives successfully navigate these hazards. Contact us to design a plan for enjoying the rewards of your hard work.