As a business owner, do you have a succession plan?  If you answered no, please take a moment to read this fantastic article which was featured on Canada.com. 

In a nutshell, this piece emphasizes the importance of succession planning and business valuation when the unexpected illness or death of a business owner takes place.  In the example used, the owner’s wife was left to keep the business affairs in order amidst competitors trying to buy it for pennies on the dollar once the owner passed accompanied by a number of other stressful events.  A business valuation became a life saver to this company and the heirs of the previous owner’s estate. 

In today’s business world, due to the rapidly aging baby boomer demographic, it has become more important to know the value of a business, have one’s affairs in order and have a well thought out succession plan should illness or death come to a small business owner.  The #1 reason that small businesses are sold is due to illness of the owner or their spouse.  Not having a plan can be disastrous; typically leading to a below market sales price in the BUYER’S favor and to the seller’s detriment.  

Know your value, know your business.