By filling out a short, one-page Request for Proposal form, within 5-7 business days a full informal business valuation can be delivered, along with potential action items...
Minneapolis, Minnesota (PRWEB) January 31, 2015
In a 2012 Business Owner Survey from Harris Interactive, it was reported that 62 percent of business owners have never had their business valued and only 36 percent of businesses had an exit or continuation plan in place. Of that 36 percent, only 2 in 10 had a plan in place to protect the business in the case of an owner’s death, and only 1 in 10 had a buy-sell agreement in place to protect the business in the event of an owner’s disability. While these worst-case scenario conversations are not the easiest to have, the fact of the matter remains that avoiding these conversations can lead to your clients finding themselves facing possible financial ruin due to circumstances that can and should be avoided by discussing income protection strategies.
According to the United States Census Bureau, of the 28 million businesses in operation in the United States, over 50 percent of Americans (120 million individuals) are working in small businesses, which are the least likely to have proper income protection planning in place. The most common reason that small business owners avoid business valuations is that they lack the substantial resources that large businesses tend to have access to. These small business owners find themselves overwhelmed with the day-to-day operations of their business and are turned off by the preconceived notions that business valuation have extensive time and insurmountable cost requirements.
Secura Consultants seeks to alleviate these and other concerns by now offering complementary business valuations. By filling out a short, one-page Request for Proposal form, within 5-7 business days a full informal business valuation can be delivered, along with potential action items, such as the following:
- Succession Planning: The process of identifying and developing internal people with the potential to fill key business leadership positions at the company.
- Buy-Sell Planning: An agreement between co-owners that governs the situation if a co-owner dies or is otherwise forced to leave the business voluntarily or involuntarily.
- Key Person Planning: A plan taken out by a business to compensate the business for the financial loss that could arrive from the death or extended incapacity of an important business partner.
It is only after a business is properly valued that the owners can take the necessary steps to ensure that their income protection plans are being met.
For more information and to schedule an information business valuation, contact Matthew Riordan, Senior Brokerage Consultant, at matthew(at)securaconsultants(dot)com or call at (952) 641-5202.