1.
Are decision-making authorities clearly defined in governing documents or internal policies?
2.
Is there a defined process for resolving disputes between owners or senior leadership?
3.
Do governing documents adequately address ownership changes such as death, incapacity, or voluntary exit?
4.
Are leadership responsibilities and authority documented rather than based solely on informal understanding?
5.
Is there a mechanism (board, advisors, or formal review process) for evaluating major strategic decisions?
1 out of 4
6.
Are key commercial contracts structured to clearly allocate risk between the company and counterparties?
7.
Has the company reviewed whether its insurance coverage aligns with its actual legal and operational risks?
8.
Are vendor and contractor relationships governed by written agreements that address liability and confidentiality?
9.
Are regulatory or compliance obligations periodically reviewed to ensure the company remains aligned with current requirements?
10.
Has the company evaluated where a single dispute could create material financial or operational disruption?
2 out of 4
11.
Could the business continue functioning for several months if a key founder or executive were suddenly unavailable?
12.
Are critical client relationships institutionalized rather than dependent on one individual?
13.
Are essential business processes documented so others could maintain operations if necessary?
14.
Do multiple individuals have authority to manage banking, financial, and operational systems if needed?
15.
Has the company evaluated potential “key person” risk and taken steps to reduce operational dependency?
3 out of 4
16.
Does the ownership structure integrate with the owner’s broader estate and wealth planning strategy?
17.
Is there a documented plan for transferring ownership if the founder retires, becomes incapacitated, or dies?
18.
Have the tax implications of future ownership transitions been evaluated in advance?
19.
Has the company evaluated whether its ownership structure supports long-term continuity of leadership and control?
20.
Are mechanisms in place to prevent unintended ownership transfers to outside parties or heirs who are not active in the business?
4 out of 4
