Success of Your Business Depends on Your Exit Strategy

Recently, I received a phone call from a client, telling me that he is going through a divorce. Although he was ready for an amicable split of his assets and minor children, he could not say the same about his business that he built over the last decade. My client’s divorce is now at risk of becoming very expensive because his wife owns a portion of his business.

Unfortunately, I hear such stories more often that I would like. Especially disappointing is to hear such stories from my existing clients with whom I have spent years trying to convince them to execute a buy-sell agreement. (Buy-sell agreements describe exit strategies and funding options for the business owners who want to (or have to) leave the business, whether due to a divorce, death, or disability.)