Do you have a plan?
Many people own and operate successful businesses through partnership, company or trust structures. However, the key people in the operations of these businesses are often too busy to consider what would happen in the event of the death, or permanent physical/mental disablement of themselves or the other owners of the business.
Very few business owners would enjoy being forced to work with the family members (usually the spouse) of a deceased owner. Further, and more importantly, those family members may not have the necessary skills to contribute to the successful management and operation of the business.
While the surviving business owners may have the option of buying out the deceased owner’s share in the business, this can be an untimely and expensive proposition when no time or attention has been paid to proper business succession planning.
Fortunately, there are many strategies that can be put in place with the use of insurance and tailor made buy/sell agreements. These strategies ensure the continued management and operation of the business for the benefit of the surviving business owners, as well as the realisation of the full value of the business for the family members of the deceased business owner. Due to the complexity of tax and other laws, a properly prepared business succession plan should involve a coordinated approach by your solicitor, accountant and financial adviser.
If you would like assistance with the preparation of your business succession plan, please do not hesitate to contact our office on (07) 4963 2000 or via our online contact form.