Every business owner should have a succession plan that takes into consideration expected events, like the planned sale of the business at a good price. It should also take into account unexpected events, like the disability or death of the owner.
The plan should answer the question, If the owner is disabled, how can the business be maintained to provide income for the owner/owner’s family during this period. If the owner dies and the business needs to be sold, family members should have an idea of the value of the business beforehand. Especially if the business has to be sold quickly to minimize a significant loss in value. Periodic business valuations are key to a successful plan.
