When we begin working with a business owner, our first step is determining the “de-risking” measures needed to solidify the company’s foundation. We initiate this challenging conversation by asking important questions that tie into a group of challenges we call “The Five D’s”: Disagreement, Divorce, Disability, Distress and Death.

The crucial plans and documents that need to be put in place (or updated) include many of the following:

• Buy-sell agreements
• Business valuation procedures
• Cashflow forecasts
• Contingency plan documents
• Leadership succession plans
• Operating agreements, partners’ agreements or shareholders’ agreements
• Property, disability and life insurances
• Trust & estate plans

The Five D’s are the unfortunate realities of life that can blindside you, adversely impacting many lives when the right plans are not in place ahead of time.