Business Value Protection Planning/股东生意保值规划

23 Jul 2014
Business Value Protection Planning/股东生意保值规划
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If you have been started business with your partners & the business is profitable, you should have an exit plan for your business to avoid creating problems to your family & your partners upon sudden demise or incapacity, ill health. Having the Business Protection plan, it provides guarantee sale of the business at full & fair value at agreed pricing & smooth & quick transfer of the business sale process with no interruption of the business operations.

Common problems arise without proper Business Protection Plan:

1) A new partnership is created due to the inheritance of shares/interest by the inexperienced heirs. Chances are    this new partnership may fail.

2) There is no pre-agreed price for any sale to take place when the heirs decided to sell to the surviving co-owners. As a result, it may take years to settle a transaction price.

3) Some of the unqualified heirs may insist to be the directors of the company and be active in running the business. This may lead serious disruptions and disputes within the management.

4) It is possible that co-owner may decide to abandon the business and start their own due to disputes with the heirs. However, starting a business may take a lot of time & money.

5)Loss of profits & uncertainty about business future success.

Ask yourself:

1) If a co-owner dies today, can you work with his/her family members to run the business?
2) Will the co-owner's family members know how to run the business with you?
3) Can they work well with you?
4) Would you beneficiaries able to get a fair price?
5) Do you able to buy out the co-owner's shares/interest from the family members where there is no pre-agreed price in a written agreement?
6)Can the shares you are purchasing be able to transfer quickly to you?

How can you protect your hard work in building your business in the event of the above issues happen?

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