Issue link: http://palletcentral.uberflip.com/i/1009631
36 PalletCentral • July-August 2018 palletcentral.com owner exits, whether voluntarily or otherwise. They often find the remaining owner does not want to be a sole owner. 5. Because comprehensive continuity planning involves professionals not ordinarily consulted when you prepared your buy-sell agreements, you need to have the following collaborators on your Advisor Team: • Exit Planning Advisor • Valuation Expert • Business Consultant • CPA • Financial Planner Conclusion Your buy-sell agreements, at best, may only provide partial solutions for the surviving and deceased owners (and their families). Even well-drafted agreements (a) only provide a partial replacement of the deceased owner's income stream or (b) protect the business from the loss of the personal guarantor (or the owner indispensable to business operations). Buy-sell agreements typically focus on the death (and perhaps incapacity) of the owners and ignore the likeliest transfer event: retirement or another lifetime departure of one owner. If you get to retirement and you can't sell the business, what's going to happen to it? Are you grooming management or one of your kids? You may need to be thinking about selling to a key employee or converting to an employee-owned company. There are a lot of business planning tools and a buy-sell agreement is just one of those. PC BUSINESS The Jacobs Team coaches their clients to succeed their business into the future, with interests for their family and financial well-being in consistent focus. Contact them at www.tjt4001.com. Many buy-sell agreements are too simplistic to manage the personal complexities of the individual owners who sign them and their relationships with each other. That's just one reason why it is impor tant to constantly update your buy-sell agreement.