Most of my blogs to date have been about preparing yourself to buy into a pharmacy. Of course, during this time, you are excited and anxious and ready to hit the ground running in your new business, your family is pumped and ready to support you BUT what if tragedy struck?
· Have you ever thought of what would happen to your interest in your pharmacy business if you suddenly died or became permanently disabled?
· Does your family know what will happen to your share in the pharmacy?
· Have you ever wondered what would happen if either of these sudden events happened to your business partner?
· Could you afford to buy their interest out?
· Have you and your business partners agreed on the procedure to be followed if a partner wishes to exit the business or retire?
Regardless of whether you operate in a partnership, a trust, a company or a combination of these, the partners in the business need to have a business succession strategy documented either in a partnership agreement or a shareholder’s agreement that deals with the following matters:
· death,
· total disability,
· bankruptcy or
· retirement