Selling a Business? We Can Help.
Looking to narrow down your portfolio? Exiting the business-world altogether to enjoy retirement? It’s probably been a long race, and you want to make sure that you finish strong. The right policy options can supply you with the lowest possible risk as you look to cash-out your winnings.
Here are a few things to keep in mind:
Nothing is over until it’s over
Until the money is in the bank, any deal can fall through. Depending on the financial situation of the purchasing party, you may be wise to insure against the risk of them failing to complete the transfer of ownership (especially if it’s a graduated buy-out).
Risk transfer with ownership, not agreements
Say that you have a general liability policy in place to cover any potential injuries that occur at a given work-site. You also have an agreement in place (dated to a particular day) to sell that work-site as part of your business. Make sure that your insurance policy stays valid until the transaction is complete. If that date gets moved back for any reason, you don’t want to risk a gap in your liability coverage.
All sales should be final
No one wants to have to wait out any “statute of limitations” before they can be sure their buy-out money is truly theirs. To protect yourself against the risk of a delayed damages claim, make sure that you buy adequate insurance to cover yourself (or put a requirement in your sale contract that the buyer provide their own liability policy to cover risk.
BrokerAge has a team of local partners and brokers available to help you make a safe and easy exit. Book a meeting with them today.