Business Succession

 

All closely held businesses face the possibility of an owner dying, retirement or becoming disabled.

A business owner’s death or disability can create major problems. A lifetime of hard work and investment can be jeopardized, leaving the other owners and the deceased’s family in the difficult position of sorting things out. A properly structured and funded Buy-Sell agreement permits an orderly transfer of the business.

 

There are several occurrences that can cause disruption of a business:

·        Death of an Owner

·        Disability of an Owner

·        Bankruptcy or Divorce of an Owner

·        Retirement of an Owner

·        Withdrawal of an Owner prior to retirement

·        A key non-owner whose death or resignation would greatly impact the success of the business

 

For Family Owned Businesses, there are additional considerations:

·        Failure or liquidation of the business in event of sudden incapacity of the business owner, partner or key employee

·        Unqualified and/or inexperienced heirs running the business

·        Loss of income stream to remaining family members who are not active in the business

·        The potential for unwanted litigation expense due to disagreements between active and inactive family members