As a business owner, we fully understand the vital importance of your business security. After all, it’s the Goose that lays the golden egg! Allow us to introduce safety nets around it so that you can enjoy whatever stage of life you are in! As Chartered Accountants, we have the knowledge and expertise to guide you through the compliance requirements of your business whilst working with you to continually improve and grow the value of your business assets.
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Our Clients' Success Story
Dave and Cheryl are Directors of a successful Solicitors firm and requested advice on a buy-sell agreement to ensure their business continuity in the event of untimely death or accident.
Whether you decide to sell up, retire or get out of business for health or other reasons, it’s inevitable that one day you will leave your business. But what happens if you or another shareholder pass away or leave unexpectedly? Dave and Cheryl wanted to know that any unforeseen changes in their health will not impact the business.
Statistics show that failure to consider the departure of a business partner can significantly increase the risk of business failure and personal financial debt. Without the right legal agreements and insurance policies in place, the death or permanent disability of a shareholder can mean having to sell shares, liquidating the business or accepting a new shareholder. This is where a buy-sell agreement helped Dave and Cheryl and provided them both with peace of mind at minimal expense.
A buy-sell agreement is a legally binding agreement between shareholders that governs the situation if a shareholder dies or is otherwise forced to leave the business, or chooses to leave the business. Should a specific event occur, a buy-sell agreement can allow for the buyout of a shareholder’s interest by the other shareholder. Specific events that may trigger a buy-sell agreement include death, trauma, long-term disability, retirement or bankruptcy. In short, if you own all or part of a business – any business – a buy-sell agreement is essential.
When considering buy-sell agreements, it is prudent to obtain the advice of a specialist to guide you through the process.