Business Continuity Planning
Business continuity planning encompasses a wide range of consequences that may follow the departure of a majority owner or a member of a controlling owner group because of death, disability, retirement, divorce or termination.
Business continuity planning protects your right to:
- receive payment for your interest;
- provides certainty about what you may be required to pay for the interest of a co-owner;
- supports the business after an owner's departure, so it can continue to thrive.
These issues frequently keep business owners awake at night wondering, what could happen to their ownership interest and to the business itself.
None of us likes to think about what might happen to our businesses or our families if we were to die or become disabled. Owners who do let that thought cross their minds stay awake nights worrying about it, push the thought to the back of their minds or engage in serious business continuity planning.
This issues covers the impact and the cascading affect that your death will have on employees and customers.
A case study illustrates what can happen to an owner’s business and his or her family when that owner fails to make contingency plans should she or he not live long enough to leave the business in style. This article outlines some simple steps sole owners can take to ensure that the companies they worked so hard to create don’t disappear if they do.