Why is a written Business Succession Agreement important?

If a written Business Succession Agreement is used and triggered according to the terms of the agreement, the business insurance proceeds are generally quickly available, and the following benefits are provided:

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Certainty – about succession plans, i.e. what happens and when.

Stability – to the business, the continuing business owners, and to employees.

No need for additional borrowings for the buy out – the continuing business owners can buy-out the terminating business owner’s share without having to borrow additional money.

An agreed sale price – to be paid to the terminating business owners or his or her estate.

A significant reduction in delay – between the trigger event and receiving the insurance proceeds.

A sense of security – to financiers, suppliers, staff and customers.

Preservation of the value of the business.