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Exiting your Business on your terms

February 25, 2015

For most business owners a substantial amount of their wealth is tied up in their business. All business owners have a "plan" for exiting. For a lot of people there is no formal plan rather a default plan that will be actioned as a result of triggers.

What are some of the triggers to a forced sale:

* Death or serious disability of an owner

* One of the owners suddenly wanting to leave

* Change in market conditions

* Competitor activity

* Damage to plant and machinery

How would you and your business respond to one of these triggers? Will the value of your business decrease? How will you get your cash out of the business?

Smart business owners plan for eventualities. A succession plan, sometimes called a buy/sell agreement, brings an organised plan that will protect the wealth you have invested in your business. This will allow you to exit the business on your terms.

The team at Chester Grey are able to assist with advice regarding implementing a succession plan for your business. The plan will incorporate, valuing your business, an exit strategy and implementing suitable insurance to manage the unforeseen death or disability. To start the process call Carole on 2778278 or email carole.smith@chestergrey.co.nz

To get advice on saving money on your insurance premiums, talk to our insurance expert Gerard Gill, contact Carole carole.smith@chestergrey.co.nz or call 277 8278 to arrange an appointment.