Problems Without Business Protection Plan

Ask yourself:-

  • If a co-owner dies today, can you work with his family to run the business?

  • Will the co-owner’s family members know how to run the business with you?

  • Can they work well with you?

  • Would your beneficiaries be able to get a fair price?

  • Do you have the funds to buy out the co-owner’s shares/interests from the family members when there is no pre-agreed price in a written agreement?

  • Can the shares/interests you are purchasing be transferred quickly to you?

Often these are:-

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

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

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

  • It is possible that the co-owners may decide to abandon the business and start their own due to disputes with the heirs.

  • Loss of profits and uncertainty about the business future success.

After all your hard work in building your business, you need to avoid such problems.