What impact would your permanent disability or death have on the value of your equity?

Would you or your family be able to easily extract the value of your equity?

Can the business continue to operate without you, and would your departure cause a decrease in turnover or even cause the business to cease operations?

Shareholder protection, supported by a Buy/Sell Agreement establishes how a business will continue to operate should an injury or death take place, and ensures the value of your interest will be paid to yourself or your estate in return for the transfer of equity in the business.

Less than 30% of business owners have a written plan for the transfer of their business interests. For a four-partner business, the chance of one person exiting due to illness, disability or death is over 70%.

The risk is real...

Aroud 2,500 Autralians die each week and no one business, occupation or age group is immune.

Chance of one partner...
No. of partnersDying before age 65Dying or totally disabled before age 65
2 Partners 35 in 100 52 in 100
3 Partners 47 in 100 67 in 100
4 Partners 57 in 100 77 in 100
5 Partners 66 in 100 84 in 100
6 Partners 77 in 100 89 in 100
Specialist Advice Services provides expert guidance on establishing a Buy/Sell Agreement, facilitating discussions with professional legal, taxation and insurance advisors to ensure that your remaining business owners can acquire your share with the minimum of fuss. Our specialist team will make sure the business can continue to operate successfully and yourself or your family receives the true value of your ownership.

What is a Buy/Sell Agreement?

This agreement is a formal agreement addressing funding and shareholder equity transfer; implemented to manage an unforeseen business succession need, due to traumatic illness, permanent disability or premature death.

These agreements require expert knowledge to be professionally drawn up. This agreement ensures that control of the business remains with the right person.

Should you consider Shareholder Protection?

Establishing a Buy/Sell Agreement can remove the financial hardship when an unplanned event takes place and protects surviving principals and family members.

It ensures equity remains tightly held, preventing third parties from becoming shareholders and providing funding to ensure a shareholding can be paid out.

If you answer yes to the below questions, talk to Specialist Advice Services today for a comprehensive assessment of your shareholder protection needs.

  1. Are you a business owner, director or partner and a key person in the business operation?
  2. Would your business or your partners suffer if your shares needed to be paid out?
  3. Is it important for you to receive the value of your equity if forced from the business due to a death?
  4. Is your business succession plan up to date, in line with current tax policy and company valuation?