Going into business with somebody is a big decision. How will this work? How will the roles be divided? How will we grow the business together? How will we secure any bank lending when required? Certainly all these questions are imperative to your success.
We will go over the following with you:
What will happen should one of the essential shareholders become ill and not be able to attend to their usual duties?
If one of the shareholders were to die, who takes ownership of their shares?
Will the security with the bank be compromised without them?
Will turnover drop significantly with an absent shareholder?
Without an insurance plan set up to protect you as a shareholder, you could find yourself in business with the family of the deceased shareholder simply because you could not raise the funds to buy them out. In addition, the bank could ‘call up’ some or all of the debt once one of the shareholders is no longer involved in the business.
Our role as your adviser is to make sure that your shareholder agreement is in place to protect all the partners and their families, much like a personal will. We will then back this up with the insurance required to provide much-needed funds to keep the business going or pay out shareholders.