So you arrive at the office tomorrow morning and find out your partner:
  • has died;
  • had an accident/illness and is now in the hospital disabled and can no longer work;
  • is divorcing from his/her Spouse;
  • is being sued personally;
  • is filing for bankruptcy;
  • has quit;
  • needs to be fired;
  • just wants out of the business;
  • is ready to retire;
  • has lost his/her professional license;
  • is using his/her equity in the company as collateral for financing a speculative investment;
  • doesn’t agree with you on the direction of the company and there is a deadlock;
  • wants to give his/her equity in the company to his/her son, the couch-potato;
  • has been approached by a major competitor who wants to buy out his/her shares in the company.
If you don't have a Buy/Sell Agreement, or if the one you have doesn't work, you could wake up with a NEW PARTNER, such as:
  • Your former partner’s spouse;
  • Your former partner’s ex-spouse;
  • A court appointed conservator;
  • Your former partner’s children;
  • A creditor of your former partner;
  • A bankruptcy court trustee;
  • A bank;
  • One of your competitors;
  • Some third party investor.
Exit Strategy - Business Succession Planning - Orange County, California
Do you have a business succession plan?