Have you thought about what would happen to your business if you:
- Suffered a Disability
- Decided to Retire
Small Business Exit Strategies
One of the most overlooked business planning aspects is what will happen if you no longer wish to, or are unable to continue the business
Have You Thought About What Happens To Your Business If You Want Out? What Happens If You Are No Longer Able To Continue The Business?
In working with small business owners, I almost always see that a tremendous amount of time and attention is spent on the necessary activities needed to form the business, enter the marketplace and then grow the business. Unfortunately, most small business owners pay very little, if any, attention to something that is equally as important as formation, market entry and growth – that is their business exit strategy. You would be surprised to see how many business owners fail to create an exit strategy and have no real plan on how to protect one of their largest (if not the largest) assets they own if something were to happen to them. Sure, it is possible to begin thinking of an exit strategy right before you are looking to get out of the business for one reason or another, but it is much easier to plan an exit strategy on the front end of starting a business rather than later on when it is too late. Think about it, there are certain life events such as death, disability or divorce that you just cannot plan for after the fact. If a business owner dies, becomes disabled or divorces his or her spouse, the only way to protect the business and the interests of the business owners is to plan in advance.
Without doubt the most important documents in implementing an exit strategy is a Buy-Sell Agreement. Buy-Sell Agreement is essentially a last will and testament for a small business and its owners. It dictates what happens to a small business owner’s interest in the business in the event of death, disability, divorce, retirement, or the small business owner simply wanting out of the business. It is particularly important, if not vital, to have Buy-Sell Agreement when there is more than one small business owner.
I offer very competitive flat fees for Buy-Sell Agreements. In addition, I can assist you with winding down or dissolving business entities. For many reasons, Pennsylvania and New Jersey make it much more difficult to wind down and dissolve a business entity than it is to form one. Failure to properly plan for the winding down and dissolution of a business entity can result in a myriad of fees and other expenses that accrue over time. It is not uncommon for a small business owner to receive a notice from the State several years after he or she “closed” their business saying that the business owes the State significant amounts of money.
If you have a business you are winding down, or you would like to discuss the various business exit plans that may be available to you, please contact me at any time.
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If you are interested in working with us or learning more about us, give us a call at 215-914-6880 or send us an email.