It is essential for any successful closely held business or professional practice to have in place a continuation or disposition plan considering factors of ownership and control.
Having complete control of a costly business with no ownership is worthless; and ownership in a small or closely held business you do not control is difficult at best. Most successful closely held business, ownership and control are typically fixed and determined. In the small closely held business it is generally accepted that the same individual, or group of individuals, both control the business and ownership. Continuation and value of a professional practice generally lies exclusively with the principal. But what happens to control and value upon death or disability of the principal, business owner or partner? This is an essential question which if not answered positively with an effective business succession plan will lead to eventual failure of the business or professional practice.
Essentially principals of professional practices or business owners face and must consider three risks: Death, Disability and Retirement. In the event of a principal or business owner’s death, disability or retirement disposition of the business interest will; be continued, sold or liquidated. The smart business owner or principal from the very start requires an exit strategy.
POINTS TO THINK ABOUT
1. Will successor management be available, capable and willing to run and operate the business?
2. Under successor management will the business be able to provide satisfactory return for the family?
3. How will the family receive income benefit from the business and will it be tax efficient?
4. Should there be continuing family involvement in the business?
5. Is a buyer readily available and prepared to continue the business?
6. Has planning been completed guaranteeing; completion of sale and purchase price?
As a business owner, wouldn’t a conversation concerning disposition of your business in the event of death or an exit strategy in the event of disability or the desire to retire make sense? Today is the best time to have this conversation please call Hubert McMinn at 888 270 9870 or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it. for a confidential and informative conversation . “Do it today”!
For a free consultation and information concerning your situation: Planned Assets - Point...Invest...Win!
