What Happens to Your Business If One of the Owners Is No Longer There?

Why Buy-and-Sell Planning Matters

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For the Surviving Owners

For the Owner’s Family

For the Business

A properly structured arrangement can provide the funding needed to purchase the affected owner’s interest, helping the remaining owners retain control and avoid an unwanted third party entering the business.

The affected owner’s family may not want to become involved in the business. A Buy-and-Sell arrangement can help ensure that the owner’s business interest is sold and that value is realised for the family.

By planning in advance for the transfer of ownership, the business is better positioned to continue operating with greater certainty following the death or disability of an owner.

Avoid unexpected ownership changes

Support continuity and stability

Create financial certainty

How Buy-and-Sell Planning Works

Determine the Business Value

Put the Agreement in Place

Fund the Arrangement

Review It Regularly

Assess the business using financial statements and appropriate valuation methods to establish a realistic value for each owner’s interest and the funding required for the Buy-and-Sell arrangement.

Set out what must happen if an owner dies or becomes permanently disabled, including who must buy and who must sell.

Use appropriate life and disability cover to create the liquidity needed for the surviving owners to purchase the affected owner’s interest.

As the business grows, ownership changes or values increase, the arrangement and cover should be reviewed so it remains appropriate.

A Buy-and-Sell arrangement can help provide clarity, funding and continuity when an owner dies or becomes permanently disabled. Let’s review your current ownership structure and determine whether the right protections are in place.