Preparing Your Business for Succession
Successful businesses can take years to build but are often lost in an instant.
Beyond the day-to-day challenges to remain competitive in the marketplace, north of 70% of businesses owners lack adequate succession plan leaving their loved ones and employees unprepared to manage the business through a catastrophic event that impacts the business owner.
Owners and partners that fail to plan for unexpected events regularly leave their business facing operational challenges and struggling to survive. This often leads to a significant loss in value for the owners, their families, and employees.
The Cavalry helps businesses navigate a number of different business risks. Our trusted advisors work closely with business owners and their families to design contingency strategies that mitigate important risks, reducing or even eliminating the impact scenarios like Death, Disability, Bankruptcy, Divorce, or Retirement can have on a business’s sustainability.
Buy-Sell Planning is Contingency Planning: Retirement, Disability, Succession, Divorce & Death
Benefits of a Buy/Sell Agreement for the Business Owner
A buy-sell agreement gives employers peace of mind knowing that their business is in capable hands should they not be able or want to manage it. When properly funded an in-force Buy-Sell agreement:
- Provides money to ensure a good market price is available when it’s needed
- Promotes equitable and orderly transfer of ownership and management of the business
- May offer tax advantages
- Guarantees heirs that there is a buyer for assets they are not prepared to manage
- Provides Executors cash to pay estate debt, expenses, and taxes
- Potential benefits for business partners and employees
For employee-funded buyouts, a buy-sell agreement provides the employees the resource they will need to facilitate purchasing a business they may have a vested interest in but might not have the capital to afford. It also:
- Assures remaining owners that the deceased’s share of the business won’t end up with someone unsuitable
- Assures continuity for patrons , creditors and employees
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