Do you have a business continuation plan? Typically, successful family and closely held businesses follow a business plan aimed at maximizing
profits. But, to maximize the value of their businesses for their own benefit and their heirs, business owners will need more. A business continuation
plan may complete the equation.
Why Do You Need Business Continuation Planning?
Three common characteristics of closely held businesses make business continuation planning essential.
First, many closely held businesses lack successor management. If a chosen successor isn't there to open the doors, stock the shelves and direct
operations, the business may fail.
Finding a buyer and getting a fair price for the business may be difficult, especially following the owner's disability or death. Unlike publicly traded
companies, a marketplace for buyers and sellers of closely held businesses doesn't usually exist.
Finally, if you do not hold a majority of controlling interest, you or your heirs should expect a reduction in your anticipated sales price. Buyers are
often unwilling to pay fair market value for a minority interest that lacks management control.
Assuring the Preservation of Your Business