Does your company have the luxury like Jamie Dimon CEO at J.P. Morgan Chase to have two talented co-president’s step-in and lead operations while you recuperate? Jamie Dimon suffered a heart attack in early 2020. Most likely not. How long will your company continue operations and maintain profitability when you’re not there? If you don’t have a plan that addresses the loss of a key leader maybe you need to establish a written contingency plan or update your current one. Business contingency risks range from cyber-attacks, data breaches, unplanned telecom outages to the loss of a key leader. Developing a written plan that addresses these types of risks will help you, your partners, employees and your family to prepare for the inevitable. The following are five (5) steps for developing a Contingency Plan. 1. Identify and prioritize resources 2. What are the key risks? 3. Draft contingency plan 4. Share the plan 5. Revisit the plan We help company’s review and update their contingency plan as well implement or update the company’s buy-sell agreement. For most closely held businesses, the unexpected death of an owner can be the worst-case scenario. The delicate balance between the business owners, their spouses and families and the employees and their dependents can be capsized in an instant. Other buy-out triggering events include the disability, retirement or bankruptcy of a partner. Benefits of the Buy-Sell 1. Creates market for an illiquid asset, converting it to cash. 2. Avoids forced sale to raise cash. 3. Controls ownership–so that surviving owners avoid being in business with a deceased owner’s spouse or other family members. Design and Funding Considerations include: 1. Value of Business, Agreement Terms, payout-lump sum, installments and triggering events. 2. Structuring buy-sell agreement: cross purchase, entity redemption or wait-and-see. 3. The business’s current value and how it will be determined in the buy-sell agreement