It is always hard to see into the future but one thing is certain, co-owners of businesses will eventually decide to split.  Sometimes it is not a decision at all but a circumstance – death or disability or bankruptcy.

When it occurs, it is crucial for all concerned to know what to expect.   Thats where we come in.

Ideally, this is addressed at commencement of the business or when a new owner comes on board.   Appropriate frank discussion occurs and legal advice sought (we have contacts here) and then everything is documented.   Ownership of shares or units of the trading entity is done such that the best long term outcome is achieved.  We involve an accountant here too so that tax issues are properly addressed.

Then we put appropriate life insurance in place funded by the business so that if the worst happened, the business debt is cleared, widow/er paid out their due amount and the business continues.

Another event is often overlooked in this scenario – how to fund the exit of a business owner tax effectively.

We can help you here with some excellent ideas which if done properly, will ease the burden on the continuing owner and give peace of mind for the exiting owner.

Key personnel can also be catered for using a retention package funded in a tax effective way – eg if they stay 3yrs they will receive $X but if they stay 5yrs, 2 x $X is paid.  If they leave beforehand, then they receive nothing beyond normal entitlements.

Ask Steve today about how you can benefit as a business owner from advice…..