If you’re a business owner, you’ve likely planned for growth, profit, and perhaps even your eventual exit. But have you planned for disruption? Our team of advisors help business owners prepare not just for the expected—but for the unexpected. That’s where the 5 D’s come in: Divorce, Disagreement, Distress, Death, and Disability.
These events, though often unpredictable, can significantly affect the value and continuity of your business. Proactive planning is not just about protection—it’s about ensuring your business and personal legacy are secure.
1. Divorce: When Personal Life Impacts Business Value
A divorce doesn’t just end a marriage; it can end a business if not properly prepared.
Key considerations include:
- Establishing a pre-nuptial or post-nuptial agreement that defines asset division.
- Avoiding the use of personal collateral, like home equity, for business investments.
- Preparing for operational disruption if a spouse involved in the business leaves.
Our Role: We help clients structure legal protections and contingency plans that minimize risk to their business in the event of personal separation.
2. Disagreement: Protecting Partnerships
Disputes between business partners can destroy value fast. Common sources of conflict include leadership style, financial decisions, and miscommunication.
Preventative strategies include:
- Reviewing and updating your Buy-Sell Agreement annually.
- Defining roles and responsibilities clearly.
- Practicing open, honest, and consistent communication.
Our Role: We guide businesses through governance planning and conflict resolution strategies that keep partnerships healthy and productive.
3. Distress: Navigating Financial and Operational Crisis
From cybersecurity breaches to supply chain failures, distress comes in many forms. A business caught off-guard risks loss of revenue, reputation, and even closure
- Build strong financial contingency plans.
- Ensure you have proper insurance coverage for interruptions.
- Incorporate risk mitigation measures into operations.
Our Role: We assess vulnerabilities, build business continuity plans, and ensure your value is protected during unexpected downturns.
4. Death: Planning for the Unthinkable
The death of an owner or key employee can devastate a business, especially if they hold critical knowledge or client relationships. Planning for this ensures your business lives on.
- Maintain a Key Person policy.
- Keep your Estate Plan updated.
- Document processes and build structural capital.
Our Role: We help owners develop succession plans that safeguard value and ensure a smooth transition in the face of loss.
5. Disability: When Life Takes an Unexpected Turn
A sudden illness or injury can leave a business leader unable to perform their duties, putting the company at risk.
- Include Disability Insurance in your Buy-Sell Agreement.
- Assign Medical and Financial Powers of Attorney.
- Document critical processes to support continuity.
Our Role: We help business owners prepare not only legally, but operationally for the challenges that come with disability or illness.
How Tamarisk Business Advisors Can Help
At Tamarisk Business Advisors, we apply the Value Acceleration Methodology™ developed by the Exit Planning Institute to help our clients build more resilient, transferable, and valuable businesses.
Through planning for the 5 D’s, we provide:
- Business continuity and contingency strategies
- Value enhancement and risk mitigation planning
- Exit and succession readiness
Don’t Wait for the 5 D’s to Strike
Being proactive is the best protection. Let us help you secure your future and maximize your business value—no matter what life throws your way
Don’t Let Life Disrupt Your Legacy
The 5 D’s can strike at any time. Are you prepared?
Schedule a consultation with Tamarisk Business Advisors today and gain peace of mind knowing your business is ready for whatever lies ahead.
