Protect the value you built up in your business
Laura du Preez: What will happen to your precious company if you die or become disabled?
The many hours you as a small-business owner spend on your businesses will have you believing it is a valuable asset. But a business is worth nothing if its value can't be realised when you are no longer able to run it. If you are your business's most valuable asset, you need to protect the value you have built up in it from the consequences of your death or disability. Business owners often assume that there will always be a buyer for their business, when in fact owner-managed businesses are notoriously difficult to sell at a fair price, should the need arise after your death or disability, says Peter Harten, a certified financial planner at BDO Wealth Advisers. You have a better chance of securing a fair value for the business if you negotiate upfront with potential buyers how the business will be valued should it need to be sold, he says. Buy-and-sell agreements Another misconception is that when a business has shareholders, they will always act in the best interests of the other...
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