Every business owner who intends to retire at some stage needs to have adequate structures or even basic plans for finance, business risk or business operations in place.
Leaving a business without an effective succession plan in place can be devastating. Staff morale can fall, investors can become nervous and your customers may leave. All this may mean failing to realise the long term value of an investment. No one can afford for this to happen.
Too many business owners make the mistake of failing to plan their exit from the day they start their business. Business partners will want to be paid a fair price for their interest in the business and their partners will expect the same rights.
Hicks Oakley Chessell Williams can offer advice on:
- agreements with co-directors and shareholders
- business succession
- exit strategies
- succession planning generally
Business Succession Planning - your options:
All business proprietors will experience a succession event at some point, either due to death, illness or disability (an involuntary event), as a result of an equity sale or retirement (a voluntary event) or a ‘default’ event (a breach of an agreement between the proprietors). Voluntary/planned trigger events and default events are generally dealt with in a separate shareholder or unit holder agreement, while a buy/sell option agreement deals with involuntary trigger events.
It is important to have both agreements in place to cover transfers of business interests in all circumstances.
- Shareholder Agreements
- Buy/Sell Option Agreements
Law Institute of Victoria Accredited Specialists - Commercial Law