Business Succession Planning.
Everything may be rosy in your business today, but what happens when you're faced with the things you really just don't want to think about?
That's where business sucession planning can help to save the day.
Part of the broad reaching financial planning skills of Metaplanners, business succession planning involves the development of strategies that will assist your business interests to continue operating effectively should events or circumstance arise that have a significant impact on the business itself.
Metaplanners can assist you with impartial and prudent advice in the following areas:
Key Person Insurance
Just about every business has one or more key people whose capital investment, knowledge or business connections make them essential to the continued success of the business. Smart planning considers the effects of losing such a key person due to death, disability or critical illness and takes the appropriate measures to minimise the impact.
Buy Sell Agreements
Buy Sell Agreements provide a legal mechanism enabling proprietorship interests to be transferred from an outgoing proprietor to the continuing proprietor(s). Such agreements should be in place to cover events such as death, disability or critical illness.
Guarantor Protection
If an individual guarantees a business loan and provides their personal assets as security; death, disability or critical illness will not negate the obligations involved. Consideration of how the debt should be repaid to release the guarantor from their obligation should be taken.
Business Expenses Insurance
If the principal was to suffer a sickness or injury that stopped them from working often their ability to generate an income is compromised while the fixed expenses of operating a business would continue. Business expenses insurance is specifically designed to cover this contingency.
Commercial Debt Forgiveness Provision
Broadly speaking, commercial debt forgiveness arises where an individual is freed from the obligation to pay a commercial debt. While it is common practice to tidy up these loan accounts on the exit of the business principal, tax issues can arise where this occurs.