The Five D's: Safeguarding Your Business for the Unexpected

As a business owner, you've invested years—maybe decades—of hard work, sweat, and sacrifice to build something meaningful. But have you ever considered what would happen if life threw a curveball your way?

As an M&A Advisor who has been advising business owners on the sale and purchase of businesses for the past sixteen years, I often see situations where the "Five D's"—Death, Disability, Disaster, Divorce, and Disagreement—turn up unexpectedly and can put a business at risk. These events don't just impact your personal life; they can directly affect the value and future of your business.

The truth is, none of us can predict the future. But we can prepare for it. This is where having an exit strategy becomes essential. An exit strategy isn't just about planning for retirement or the day you decide to sell. It's about building a resilient business that's ready to face whatever comes, even when it's unexpected. Having this plan in place can provide a sense of security and confidence, knowing that your business is prepared for any eventuality.

One of the first steps in building this strategy is getting a business valuation . A valuation doesn't just tell you what your business is worth today; it gives you a foundation to make informed decisions. When you know the value of your business, you're better equipped to manage it, protect it, and—when the time is right—sell it on your terms. This knowledge empowers you, giving you a sense of control and confidence in your business's future.

But don't go it alone. It would help to have a team of trusted advisors specializing in protecting and growing businesses. This includes your CPA, financial advisor, legal counsel, and a coach or consultant. Each of these professionals brings expertise to the table that can help you mitigate risks, maximize your business's value, and make informed decisions for the future. They're not just there to offer financial or legal advice; they're there to help you see around corners and prepare for scenarios that may be difficult to imagine. With their support, you can navigate the future with confidence and clarity.

Think of it like this: We don't think much about life insurance or retirement funds when we're young. But as we grow older, we realize the importance of planning for the long term. The same goes for your business. Preparing for the Five D's isn't about being pessimistic; it's about being pragmatic and ensuring that you, your family, your employees, and your legacy are all protected.

Remember, it's not just about the numbers. It's about peace of mind. It's about knowing that you've taken steps to protect what you've built so that, no matter what happens, your business can carry on and provide for you and your loved ones.

Let's start planning for the future today.