Shareholder & Partnership AgreementsFunding for the buy-out when the Agreement is triggered by long term disability, or death of a partner / shareholder
Business structures are often complicated and may involve multiple layers of company-owned shares, trusts owning shares, individuals or non-working shareholders. Generally, there is never a problem until there is a problem – such as a premature death or an active shareholder can no longer contribute to the business due to disability – and a shadow is cast over the future financial stability of the business.
The business has to ask some serious questions if a key person in the business is affected by disability or becomes seriously unwell, such as:
- How long do we pay them for?
- How to find someone to take their place?
- How do we financially exit the disabled shareholder or a deceased shareholder’s estate?
- How do we fund a buy-out?
Our job is to work with your business and your legal and accounting advisers to ensure business revenue continues, and to identify buy-out options and funding, and effective structures and agreements that meet the requirements of the business owners.