Our ‘Buy/Sell Agreement’ Insurance can help with the smooth succession of the business from one owner to another and provides security for employees through the continuity of employment.
Unfortunately, more often than not, the death of the co-owner of your business can result in the demise of an otherwise viable business simply because of the lack of business succession planning, unless the co-owners are husband and wife.
While the owners are alive, they can at least negotiate a buy-out amongst themselves, for example on an owner's retirement. But what if one of them dies? The remaining owners must now negotiate with the deceased owner's legal personal representative, who may well be more concerned about the needs of the estate rather than the needs of the business.
Many business owners mistakenly believe that this contingency has been catered for in the business' constitutional documentation. Often there is no buy-out provision; or if there is, it's usually ineffectually drawn up and inadequately funded.
Our ‘Buy/Sell Agreement’ Insurance can provide the continuing owners, or their nominee, with sufficient cash for the transfer of the outgoing owner's equity to the continuing owners, if a business owner dies, is disabled or suffers a critical illness.
- Why insure with us:
- Personalised service through dedicated teams
- Over 65 years of experience