It goes without saying that companies require specialist financial planning advice.
However, too many companies leave this aspect of their business to chance (or to their accountants) risking their business in the process.
Companies have many specialist needs including partnership & key person protection and employee benefit schemes. Contact us to arrange a business financial planning review.
Many small yet successful businesses operate as a partnership of two or more individuals, each one of which often brings a unique and valuable skill to the table.
If one of the partners dies, his share of the partnership or company passes on to his estate, often a surviving spouse or children. Technically speaking, if the business is a partnership, the partnership is dissolved, which may not be convenient to the surviving partners. If the business is a limited company, the surviving beneficiaries will inherit the deceased shares, and in so doing, will own part of and possibly even gain a controlling influence over the remaining business, but without necessarily having the knowledge or skills to contribute.
It is often in the interest of all parties to put in place an agreement that allows the surviving partners or shareholders of a company to ‘buy out’ the interest of the deceased partner/shareholder. Such an arrangement can provide the deceased heirs with a cash lump sum equivalent to their inherited share, whilst returning ownership and control of the business to the surviving partner. There are many ways of doing this, including buy and sell agreements, and cross option agreements. The best option will depend upon your company’s circumstances and those of its potential beneficiaries.
It is important therefore to establish a detailed understanding of all the relevant factors that can influence which type of agreement you have in place and which type of agreement is suitable.
In order to determine the best solution for you, meet with one of our advisers, who will asses your current situation,
or issue that you want addressed, and will construct an effective affordable solution specially tailored to fit your needs.