Business Succession Planning

The death of a partner or major stockholder in a business can have devastating effects on both the business and the deceased partner’s surviving family.  The business is concerned with gaining control of the deceased partner’s interest at a fair price so that it can continue operations without interference from the surviving family members.  The family members are most concerned with receiving as much money as possible for their interest in the business and for capital that may be needed for estate settlement purposes.

The Need for a Written Agreement

Absent a written agreement, the competing interests of the business and the family members could lead to major conflicts, litigation and possibly the forced liquidation of the business.  A buy-sell agreement can ensure that the business interest of the deceased partner will transfer in an orderly manner to the benefit and satisfaction of all parties.  With a buy-sell agreement in place, the stability of the business for it clients, employees and investors (or creditors) is more assured.

Key elements of a buy-sell agreement include a mutually agreeable sales price and terms of the sale.  The agreement should also be funded in order to ensure that the capital is available at the time of the death of a partner. 

For more information on Business Succession Planning, contact us today.

Thrive Wealth Management, LLC’s (Thrive) web site does not represent an offer of or a solicitation for advisory services in any state/jurisdiction of the United States or any country where the firm is not registered, notice filed, or exempt.  Thrive provides advice and makes recommendations based on the specific needs and circumstances of each client.  Clients should carefully consider their own investment objectives and never rely on any single chart, graph or marketing piece to make decisions. Thrive is not a broker dealer and does not offer tax or legal advice. Please consult your tax adviser or legal counsel for assistance with your specific needs.

Thrive Wealth Management, LLC works as your personal financial advisor or financial planner, offering you a wide range of services such as investment management, retirement planning, insurances, succesion, retirement, tax, small business and many more. We proudly serve clients from King of Prussia and Valley Forge PA, as well as the surrounding communities.

Website Design For Financial Services Professionals | Copyright 2017 AdvisorWebsites.com. All rights reserved