Thinking about risk before it happens is key for business owners.
The newest threat to businesses of all sizes is cybercrime.
Other risks to consider are asset concentration, fiduciary risk, and risks unique to the nature of your specific business.
Planning ahead is critical to mitigate many different kinds of risk and protect your business from losses.
Entrepreneurs are risk takers by nature, leveraging their insight, hard work, and capital to create successful companies.
We often come across a surprisingly large number of business owners who struggle with this very issue, as it is both a monetary and an emotional decision. The most common approach is to give other non-business estate assets to those not receiving any interest in the business with the goal of equalizing the value received by everyone.
The decision whether and how to best transition out of your business is seldom easy. Several key factors may include: (i) financial needs moving forward for you and your family; (ii) your desire to remain involved in the business in some capacity; (iii) the involvement of business partners and/or family members; (iv) the impact of income and/or estate taxes; and (v) market conditions.
