Business Succession
If you have a business partner and they were to pass away, unless you have a written agreement dictating otherwise, the estate of the deceased partner will receive the shareholding of the business entity.
This means that you may have to work with the deceased's beneficiaries, or alternatively pay them out.
A common issue is that your valuation of the business may be different to theirs. You may also have to take out a loan and fund those costs so as to buy-out the shareholding of your business. This may mean that ultimately, you could lose your business entirely.
Establishing a buy / sell agreement for your business can remove these issues for you.
A business partner, buy-sell agreement enables a much smoother process in terms of business succession. The value of your business and it's method can be established within the agreement as well as a choice of how each of you fund that buy-out process.
Typically, business partner insurance will be the most cost effective solution. We can assist you with establishing the buy-sell agreement and associated insurance requirements.
Dudley Wentzel is an Authorised Representative (Number 332920) for Professional Investment Services
A.B.N. 11 074 608 558
Australian Financial Services
Licence No. 234951
Level 14, Corporate Centre
One Cnr Bundall Rd & Slatyer Ave
BUNDALL QLD 4217
PH: 07 5574 0244
Fax 07 5574 3722
Email: info@profinvest.com.au
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