It is important for small business owners to establish a business succession plan in which clear directions are provided as to who should receive their interest on their departure from the business, and its sale price (if any).
This usually requires careful consideration of whether the interest should be:
- Kept within the family; or
- Sold to a buyer identified in advance (usually the remaining owners).
If the family doesn’t want involvement in the business, it is clearly important to establish arrangements to sell the business interest to an identifiable buyer on the occurrence of a specified event.
If a business owner dies (or becomes disabled) often the remaining owner(s) want exclusive control and ownership of the business, whereas the departing owner (of their estate) usually wants the money representing their share of the business interest.
CA Financial Services can help formulate a strategy to help your business succession goals. Contact CA
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Carole was fantastic throughout the process of restructuring our loan. She got us a great deal and explained all the features and how we could use them. I had plenty of questions along the way and Carole answered them promptly and simply. I would recommend Carole to anyone seeking a new mortgage or financing an existing loan. Ben Harper, Nestle – Demand & Supply Planning Manager