If you’re a business owner, you know how much time and effort you’ve put in to building up and running your business over the time it’s been operating. But do you know what would happen to the wealth in your business if you or your business partner(s) suddenly fell ill or died?
Business succession planning is designed to address a number of financial, legal and operational strategies in the event of a significant change in the life of a business owner. It’s never too early to start thinking about business succession planning. Have you considered any of the following?
- If you died or fell ill, does your spouse or family have the knowledge to carry on your business?
- If you have a business partner or partners, would they accept a working relationship with the beneficiaries of your estate?
- What if you were to sell your share in the business?
- Would your business partner(s) purchase your share, or would you have to find an external buyer?
- Would you be able to negotiate a fair price? And how much tax would you pay?
- What would happen if your spouse died or you divorced?
- What impact would that have on your business?
- Would you be able to look after your family, keep the business running, and meet other financial commitments?