Exit Coach Bill Black interviews Top Advisors for Tips, Ideas & Precautions for Business Owners who want to grow and protect their company value and plan for a successful Business Sale or Transfer. Listen daily so you can be well-planned!
Episodes
Tuesday Nov 05, 2013
Tuesday Nov 05, 2013
Every Business Day Bill Black, The Exit Coach, records The AUDIBLE, a 60 second exit planning tip of the day -- today''s is the second of a series of 3 episodes that stress the importance of keeping your Buy-Sell up to date.
Yesterday I mentioned how a client of mine was nervous because his recently deceased partner’s widow had received the proceeds of the buy-sell agreement based on a woefully out of date valuation.
On the advice of his attorney, my client filed the insurance claim form and received the life insurance proceeds and wrote a check to the widow.
She had received the check last week and called immediately for a meeting.
They exchanged pleasantries for a moment, Then she said, "look I’m no business expert but I know the business must be worth more than the check I received. There’s got to be a mistake!"
My client cleared his throat and explained that the buy-sell agreement had been prepared several years ago with a fixed valuation and that they had failed to update the document – and so the check she received was what the document said to pay.
That’s when the story took a really interesting twist – and I’ll finish that tomorrow.
What do you think is going to happen?