This document discusses the importance of business continuation planning through a buy-sell agreement to protect a business in the event of the owner's death, disability, or retirement. It outlines the key benefits of a buy-sell agreement such as pre-determining ownership transfer, setting a fair purchase price, and providing funds to pay estate taxes. The document also notes that without a proper succession plan, a business could face problems like lost customers or disagreements that threaten the business's survival.

1. Business Planning: Business Continuation Benjamin Rich Financial Advisor A9JC-0422-10

3. A key consideration in planning for the success of your business is understanding its value. What is your business worth? What will it be worth in 5, 10 or even 15 years?

7. So, What Is It? With proper business continuation planning, you can help ensure that your business, and the people whose incomes & lives depend upon it, will succeed when you’re no longer around.

8. Usually called a “buy-sell” agreement, proper business continuation planning answers the question, “Who will take over my business should I die prematurely, become disabled, or simply decide to retire?” So, What Is It? Business Continuation Planning is developing, and then implementing, a plan of succession.

13. Consider the following real-life IRS challenges to what these individual business owners thought their businesses were worth.

14. Note: These results are based on specific cases that may or may not be representative of other situations and cases.

15. A properly drafted buy-sell agreement could save you, your company, and your heirs thousands of dollars and ensure that your assets are passed on quickly and without delay.

17. The following chart indicates the odds of at least one death occurring before age 65 to any one person out of one, two, or three persons. Do I Really Need One? Do you really need a buy-sell now?

18. In addition to providing a plan of succession, business continuation planning can also save you thousands of dollars and hours by eliminating the potential costs, delays, and frustration of IRS contests & litigation. Finally…

21. This information should not be construed as tax advice applicable to each individual. Please consult a qualified tax advisor regarding your individual circumstances. ©2009 The Penn Mutual Life Insurance Company, Philadelphia, PA 19172. www.pennmutual.com. A9JC-0422-10