Partnership / Shareholder buyouts
We can assist you in making sure ownership of your business transitions smoothly on the exit of your partner / shareholder in the event of death, retirement, disablement.
What would happen to control of your business if you, a partner or shareholder unexpectedly exited the business, from either Disablement, Death or suffering a Life Threatening Illness? How would their interest in the business be dealt with?
Also what happens if a Partner / Shareholder retires or wishes to exit the business early? What provisions are in place to ensure funding will enable remaining partners / shareholders to purchase their partners shares in the business.
- Would you want to purchase their share in the business to keep control rather than an outsider coming in?
- How would you feel if their family decided they would not sell their share?
- Can you negotiate a fair price based on the current value of the business, now that your partner / shareholder is unable to contribute to the running of the business.
- Where would you get the money to buy their share?
- Would your bank extend your credit?
These are all questions you will have to ask yourself should this happen to your business and you do not have a structured Business Succession Risk Protection Plan in place. Put simply this plan includes an agreement that ensures the ownership of the business / shareholding changes without interference and that funding is in place to pay the agreed price to the departed partner's / shareholder's family / estate.
The benefits are the smooth transition of ownership with the least disruption to the running of the business, its staff, customers and creditors. It also ensures each partner / shareholder's family receives payment that recognises the effort and achievement of building the business over many years.
The two most important ingredients for a successful Succession Plan are
- The funding mechanism
- The 'Buy / Sell' agreement to ensure the transfer of ownership as agreed.
We work with Lawyers who specialise in this are to assist our clients. Please note our referral partners are not authorised to provide advice under the Aon Hewitt Advice Limited Australian Financial Services License.
For further information or to book an obligation free appointment:
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Tel (within Australia): 08 8221 6515 Tel (international): +61 8 8221 6515
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