3 Key Reasons to Have a Business Succession Plan

9:53 pm Business Planning

business for sale e1346270869281 3 Key Reasons to Have a Business Succession PlanCalifornia small business owners who focus all their attention on the day-to-day tasks of managing a business may be shortchanging both the business and their beneficiaries if they do not consider long-term business succession planning.

Unless you want your business to die with you, you must plan for what happens to your business after you are gone.  Creating a business succession plan provides small business owners these three key benefits:

  1. Timely settlement of a deceased partner’s estate.
  2. Assurance of an agreed-upon price for a deceased partner’s share of the business, eliminating the need for valuation upon death.
  3. Policy benefits are available immediately, helping to prevent potential cash flow problems or need to sell the business or business assets to cover the cost of a deceased partner’s interest in the business.

To ensure a smooth, equitable transition of ownership interests, California business owners should consult with a business planning attorney for help in developing a business succession plan.

Help is available to you by contacting your Southern California financial planning experts today.

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