Business Succession Planning is a way to protect, preserve, and value a business and to provide liquidity, an efficient transition, and a mutually beneficial funding mechanism for all business partners upon exit.
Business Succession Plan ensures the continued survival of the business upon retirement, critical illness, death, or changes in the business relationship.
A buy-sell agreement is a key component of business succession planning, particularly for small businesses with two or more family groups in the ownership structure. This issue is applicable for both corporations and limited liability companies (LLCs). A buy-sell agreement provides for the possible or mandatory buyout of an owner’s interest in the event of disability, retirement, termination of employment, or divorce. Often these agreements are funded at least in part by life insurance or disability insurance.
A business succession planning with a buy-sell agreement is crucial for the continuity and stability of a business.
Some of the benefits of these arrangements include:
Small Businesses can fail without a proper succession planning.
Without a properly funded succession plan in place, shareholders’ dispute and struggle for control can result in business destruction.
Have you put in place a Buy-Sell Agreement to ensure the survival of your business partnership if something happens to one of your partners?
How do you ensure a fair price for your business upon exit?
How do you protect your business from the loss of a key employee?
Succession Planning is the answer to all these questions.
BUSINESS TIMES ARTICLE: Consider using universal life insurance in succession planning https://www.businesstimes.com.sg/hub/whos-who-in-private-banking/consider-using-universal-life-insurance-in-succession-planning
MANULIFE NEW YORK CASE STUDY EXAMPLES: SUCCESSION PLANNING SLIDES : https://www.slideserve.com/Pat_Xavi/succession-planning
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