OUR LEGAL SERVICES OUR FINANCIAL SERVICESESTATE PLANNINGTESTAMENTARY TRUSTSPOWERS OF ATTORNEYFAMILY LAW PROPERTY SETTLEMENT OPTIONSBUSINESS SUCCESSION PLANNINGCONVEYANCING

Business Succession Planning

Many business owners fail to address their exit strategy. They spend their lives building their businesses, yet all of their hard work can be destroyed unless a business exit agreement (or “Business Will”) is in place.

A Business Exit Agreement is a contract entered into between business partners. It provides for what the surviving partners are bound to do to buy out the outgoing / non-surviving partner’s interest in the business should a specific event occur. (“the Exit Event”)

Business Exit Events:

• Divorce

• Death

• Permanent Disability

• Retirement

• Bankruptcy

If you have failed to plan for any of these events, significant and unexpected results may occur, such as:

• You may find yourself in business with your partner’s spouse/ estate/ family who   may demand involvement in the business

• The estate/ family may demand that the business be wound up and their share    distributed

• The value placed on the outgoing party’s share in the business may be unrealistic

• The  estate/ family  may be forced into accepting a reduced payout  amount for the    value of the business equity

Creditors may call in outstanding amounts

• Credit may be restricted if the lending institution perceives that the loss of the “key    man” has resulted in diminished financial capacity

• The business may lose clients if the exit event is not handled smoothly and the    interruption of their services is not minimised.

  

A business exit agreement cannot prevent exit events from occurring but it can ensure that adequate funding and mechanisms for the transfer to occur are in place

.

We work together with your accountant and other advisors to ensure an integrated strategy and agreement is reached.

  

  

  

 

HomeAbout UsOur PeopleServicesTestimonialsFAQLinksMake An EnquiryImportant Financial Services Information
© 2011 Legal & Legal   professional and Financial Advisory Services Financial Advisory FSG 8.1.pdfServicesFSG 8.1.pdf

Website by Magicdust

FAQ