Succeeding at business means being prepared even for the things you just cannot control or did not forsee happening .
Here’s a quick checklist, just 5 questions, to see if you’ve got the basics covered.
- Do you have a Buy Sell Agreement in place? As the saying goes, good fences make good neighbors. If you have a partner(s), this agreement is the foundation document to ensure your business continues if you or another owner can no longer remain active. It also means you or your estate will be paid out if you pass away before selling.
- Does the Agreement protect you & your business from events such as Disability, Death, Retirement, Divorce, Disagreement?
- Does the Agreement cover a mandatory buy-out if an owner becomes Disabled? Or Dies?
- Is the Agreement properly funded with both LIFE and Disability Buy-out Insurance? If not, the alternative is to sell assets or pull cash, dollar for dollar, from the business at a time when financing may not be available.
- Do you know the value of your business and does this value align with the purchase price in the Agreement?