In any business, especially small to medium-sized companies, a significant amount of value often hinges on one or a few key individuals, whether it’s the founder, CEO, or a top sales executive. Key Person Risk refers to a company's vulnerability if that individual were to leave, retire, or become unable to work. For potential buyers or investors, this risk can drastically reduce the business's perceived value. Addressing this issue is vital for ensuring long-term stability and maximizing value.

In today's episode, we’ll explore how to identify Key Person Risk, strategies to mitigate it, and how business owners can protect their company’s value from this common but dangerous pitfall.