Back to Basics – ’Tis the season for succession planning

Description

Abstract: Year end is a time of planning for many business owners, and an important part of this process is succession planning and preparing the next generation of management for what lies ahead. Lenders, of course, have a vested interest in their borrowers’ successors. This article points out that succession planning isn’t just for business owners nearing retirement; lenders may need to revise loan covenants to require key-person insurance. Also, a valuation professional should evaluate buy-sell agreements.