Your Business Risks
You and your business partners have an excellent business relationship and business is booming. So you probably haven’t thought about:
- What would happen if one of your business partners decided to leave the business; or
- Agreed how much the remaining partners would pay for the exiting partners’ share to be transferred to them and by when; or
- The possibility of one of your business partners dying or suffering a serious injury or illness.
- Who you may ” inherit” as a new business partner?
- What options you may have to buy out this newly inherited business partner?
- What impact the loss of the exiting partner will have on your ability to retain clients? your ability to pay creditors? your ability to retain key staff? your ability to maintain your family’s income and lifestyle?
It’s inevitable – eventually you or your business partners will decide to leave your business; whether that is through retirement, disagreement, boredom or worse, critical illness, disability or death.
Unlike a marriage or relationship break-up there is no Family Law Court equivalent for partners in business. If you don’t agree on who should get what in the event of a break-up you will need to start negotiating (with the exiting partner or worse, their beneficiaries). Experience has shown it’s far better to agree on the exit plan when it’s a ‘level playing field’.
Exit Planning means you don’t waste your lifetime of effort
Exit and succession planning is about maintaining control over how and when you leave and on what terms.
Developing an exit or succession plan means you have every aspect of your business mapped out as to how it will get you to your desired exit outcome.
Life gets busy when you are running a business, and planning for your future can sometimes be neglected. That’s why it’s a good idea to let us to focus on your longer-term plan so you can focus on your day-to-day business.
When it comes to exit planning, the good news is that it’s never too early to start. Starting early means you create a business that is exit ready on an ongoing basis, which is desirable regardless of whether you are ready to exit or not.
Take control of your business
At ITL Financial Planning we understand you are short on time so rather than a heavy, complicated, drawn out exercise we make sure we keep things simple, manageable and structured.
We help you:
- De-mystify jargon such as partners agreement, buy/sell agreement, business risk insurance and keyman insurance
- De-risk your business
- Maximise the value of your lifetime of effort
- Secure your family’s future income
- Ensure creditors can be paid
- Provide a smooth transition and peace of mind for your family, business partners, clients and team
- Minimise tax
Contact us now so we can work with you, your business partners, your tax adviser and your legal adviser to create peace of mind and certainty.