Is Your Business Prepared For The Unexpected?

Did you know that approximately 50% of privately owned businesses fail because of unintended consequences? These consequences can lead to bankruptcy, layoffs, and ultimately an unplanned exit as the business is forced to shut down or transfer at a price much less than what the owner wants, needs, or even deserves. The Exit Planning Institute (EPI) refers to these factors as the 5 Ds - Divorce, Disagreement, Disability, Distress, and Death.

By not preparing a business for these stressors, owners are at risk. On average approximately 80% of an owner’s wealth is locked in their business, and by failing to create detailed contingency plans and legal safeguards for their business, they stand to lose the majority of their wealth in an unplanned exit.

To best mitigate the impact of the 5 Ds on a business and the owner's life, owners must first fully understand the negative consequences each can have on their organizations. The Exit Planning Institute's whitepaper, The Impact of Unplanned Consequences on Business Value, deep dives into how the 5 Ds affect business value, how a financial advisor can help mitigate these risks, and the whitepaper includes a checklist to help prepare business owners for a successful exit.

We recognize that business owners often wear multiple hats and juggle numerous responsibilities, which can make it challenging to focus on planning and protecting this significant wealth. It is crucial not to be too busy to consider this topic, as doing so can lead to missed opportunities and increased risks.

Our team has the experience and tools to equip business owners with strategies to navigate financial complexities and plan for the future with confidence. With a Certified Exit Planning Advisor (CEPA) on our team, we bring specialized expertise to help business owners prepare for succession, transition, and long-term wealth planning. Our resources and approach are designed to provide guidance through every stage of a business, ensuring a thoughtful and strategic path forward.

We encourage you to take the next step in securing your financial future—connect with us to explore how we can support your personal or business financial goals.

Disclosure:

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors. To determine which investment(s) may be appropriate for you, please consult your financial professional prior to investing. All investing involves risk including loss of principal. No strategy assures success or protects against loss.