Business succession planning is determining who will run your company after you retire or something unexpected occurs. For smaller, family-run enterprises, this step is still necessary to ensure that operations can continue without interruption. Many owners prefer that their businesses continue even after they’re gone.
What would happen to a business if the owner suddenly died?
The majority of the companies in the UAE are closing down in the event of the death of the owner or a partner. So many instances are there that many big companies in the UAE have closed.
Why is this happening?
Because these companies had no proper succession planning. There are many risks that a business owner needs to address to ensure the inheritance and continuity of the company.
Having a plan that enables you to regulate and maintain stability and organizational capability brings with it several positive effects. Succession planning contributes to the resilience of your organization in the face of sudden change. Protects the financial future of the business by ensuring cash flow. It enables the smooth transfer of business ownership. By establishing Business Protection Insurance with a reputed offshore insurance company you will be able to ensure that the business will continue uninterrupted in case you die and at the same time protect your family from all the financial hardships.
- Ensure the smooth transfer of business ownership to the inheritors
- Provides a financial safety net
- Provides funds to ensure repayment of a business loan
- Clear the liabilities of the company
- Meet with all the expenses until the succession takes place.
- Protects the loss of revenue.