Securing your business in the event of a death or critical illness of business partner can cause serious problems with the future of your company. If one of the owners becomes critically ill or dies, and the remaining owners don’t have the funds and the option to buy their shares, your business may face the following issues.
If they’re a majority shareholder and they, or their family, want to sell their share, control of the business could be sold to a third party.
If they own 75% of the shares or more, they could force the outright sale of the business.
The owner’s family may want to become involved in the business. This can often be disruptive or unacceptable to the other shareholders. A majority shareholding allows a new owner to appoint themselves as a director and to remove other directors. So, they could gain day-to-day control of the business if plans are not in place to stop this from happening.
Furthermore, the loss of a key person in your business could have a severe impact. The business could suffer badly, with sales and profits falling and increased workloads for the remaining staff.
If either of these areas are of importance to you and your company, then contact us for a review and see how you can fully protect your business.
It is expected that a business will arrive at the final figures, typically in conjunction with a tax or legal adviser. Our team of professionals also advise you on life assurance and equity release if you require.