Brisbane Money Management and its associates are able to assist small business with all matters including taxation, book keeping and insurance.
While we do find that small businesses do have some form of taxation and book keeping, it is usually the insurance side that is lacking.
When a principal in a business dies or becomes permanently disabled and unable to work again, the ownership of the business will often change. But how will the cards fall, who will the new owner be, and have you planned for this?
A business succession agreement can help you sell your business at the right price and to the right person, should something happen to you. It can also allow you to acquire a partner’s share of the business, should something happen to them.
Protecting your business interests
If you have one or more business partners, you need to ask yourself what would happen if you or one of the other business partners were to die or become permanently disabled, and unable to work in the business again. You may not want an ex-business partner’s beneficiary as your new business partner, but this is a real possibility if there is no business succession plan in place. Alternatively you may find yourself having to buy out your ex-business partner’s estate in order to keep your business, and you may not have ready access to that sort of finance.
What is a business succession agreement?
A Business Succession Agreement is a legal document which sets out the wishes of the business partners, should one of them die or become incapacitated. For example, if one partner dies, it will normally allow the surviving partner to buy the deceased partner’s share of the business. The capital to make the purchase will often come from life insurance policies, taken out on the lives of each principal.
Do you have a business succession plan?
A Business Succession Agreement helps a business plan for the possible death or permanent disability of one of its principals.
- Many businesses fail to plan for the possible death or permanent disablement of one of their principals.
- A Business Succession Agreement is one way of protecting your business.
- A life insurance policy is a simple and cost‑effective way to fund a Business Succession Agreement.