Finweek English Edition - - MONEY -

In the ideal world we build a busi­ness over a pe­riod of sev­eral years and plan to sell it at a cer­tain mile­stone: nor­mally when the owner reaches a cer­tain age, a val­u­a­tion tar­get, or a cer­tain profit tar­get. The hard fact of own­ing a busi­ness is that ac­ci­dents hap­pen and peo­ple (busi­ness own­ers or ma­jor share­hold­ers) get dis­abled or die. The other thing that hap­pens (al­beit less fre­quently) is that some­one walks in off the street and asks to buy your busi­ness.

Ei­ther way, you need to be pre­pared to sell your busi­ness at any time, and you need to make sure that your busi­ness can be sold even if you’re the one who is dead or dis­abled. Life hap­pens. Death hap­pens. Make sure the as­sets of your loved ones are se­cured by pre­par­ing your busi­ness for sale and also mak­ing sure that you carry key-man in­sur­ance so that if any ma­jor share­holder dies the busi­ness can buy them out.

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