Successful Closing Through Probate

Closing on a deal through Probate Court? Yuck, and Yes, it was a successful closing. However, the process was extremely difficult on the buyer and the family of the deceased owner who were left with the challenge of the transition.

Since an estate plan had not been developed and the owner died in a sudden tragic accident, the disposition of the business was left up to a spouse (who was unfamiliar with the business), attorneys, and a probate judge. Are these the best folks to make decisions about your business?

The process has taken over a year just to have the business valued and the buyer approved for the transaction. If you are a business owner you can probably imagine your family being at a complete loss as to how to operate your business if you were suddenly gone.

Think of the details of the business that only you know. Who would they call to fill in the blanks? Your accountant, financial advisor, attorney, or office manager? Are the financial statements up to date every month? Are there secret logins and passwords that need to be passed on? ETC!

Would a business owner willingly put their family through this knowing there are much better options? I doubt it. Fortunately in our recent case the business was able to operate without the owner. In most cases we see, when the owner dies or is incapacitated without a succession plan or a strong management team, the business just shuts down. There are very few buyers clamoring for businesses that are shuttered and unable to operate due to these unfortunate situations.

Talk to an estate attorney and financial planner who can help put a plan in place. Remember, your business is a big part of your estate, so protect it!  We can steer you toward good professionals if you need help. Just call one of our Apex Business Advisors.