Today at Goldman Sachs 10KSB, we started Module 1 where I was introduced to the concept of a “business will.” I have a last will and testament from my time in the Marine Corps. And I have a maniacal focus on making sure my family is cared for when I die. But what happens to my business? I realized that my businesses don’t have a will and they are 100% owned by me.
Our lecturers hit us with the truth: “Death is not an exit strategy.”
Maybe when you die, you still had a bunch of clients waiting for completion on contractual obligations only you could perform. What happens then? Will your spouse get sued for nonperformance? Will that detract from the wealth of your estate? If you have many employees depending on you, do their jobs just go up in smoke the very moment you pass away? Do people have passwords and logins necessary to run the business? Do your partners and associates know where you keep valuable documents and have access to them in the event you die?
Through answering these questions, we were forced to think about possible exit strategies for our businesses. You could:
(1) sell to a strategic buyer,
(2) sell to a financial buyer,
(3) sell or pass down to family or heirs,
(4) sell to employees and partners,
(5) go public,
(6) close down or liquidate, or
(7) go bankrupt.
But again . . . Death is not an exit strategy!
Have you thought about writing a “business will”? If so, what does it entail?
One Ladder Project 