Business continuity is critical to the long-term success of any business and to ensuring it maintains its value over the years. We develop strategies to ensure the continued operations and management of a company when an owner dies, becomes disabled, or just wants to quit or retire.
Key to this goal is understanding the unique personal desire of each owner. Crafting the right document ensures a departing owner is fairly compensated without unduly burdening the on-going financial and business operations of the company. Importantly, any structure must allow the remaining owners are free to operate the company without undue interference from others.
Key element of any business continuity plan include:
• Including a method to determine the purchase price for the seller’s interest;
• Spelling out specific payment terms;
• Giving the seller adequate security to enforce the payment terms;
• Deciding a spouse or child can inherit the business; and
• The terms of any non-compete or non-solicit agreement of the selling owner
These are only a few of the issues companies and their owners must address in order to ensure a smooth transition and succession of ownership..