Most of us find it hard to talk about death, never mind plan for it. As a business owner, the death of a shareholder or a business partner can have devastating consequences for you, your family and your staff.
Have you considered what would happen to a business partners shares if something unexpected were to happen?
The surviving owners will probably want to buy the deceased’s share and keep control of the business. However, the harsh reality is that many won’t have access to the required funds to cover any buy out.
Should the surviving partners be unable to source the required funds, the following could happen;
The deceased’s estate could force a sale or, worse still, the winding up of the business
Family members could become involved in the running of the business
Banks and creditors may want to renegotiate terms or call in loans
The introduction of an unsuitable buyer, potentially a competitor or rival
Consider the position your spouse and dependants would be left in, should the worst happen to you. Assuming they have no desire to be involved in the day to day running of the company, ensuring they receive a fair price for your shares would go a long way to safeguarding their future.
A clean break is often the desired route, but this is only possible if the correct solution has been put in place.
Shareholder protection provides peace of mind for the remaining directors should one of them pass away and financial compensation for the deceased’s family, in the form of a lump sum pay-out in exchange for their shares.In addition, should a shareholder become seriously ill, critical illness cover ensures a lump sum is paid out to the individual who is suffering.
How We Can Help You
Having shareholder protection in place provides peace of mind for the remaining directors, financial compensation for the deceased’s family and allows for continuity for your business through difficult times.
Our team of global wealth planning experts have already helped thousands of international investors just like you to secure their perfect tomorrow.
You can either contact your regional Skybound office, or our International Client Services team by telephone. Alternatively, you can complete the form below and we will contact you as soon as possible.
Talk To An Adviser
You can reach us directly by calling us between the hours of 8:30am and 5pm at each of our respective offices and we will immediately assist you.