Business Financial Planning
When you place so much time and effort into the running of your business, it is easy to overlook issues which could potentially have a devastating effect on your organisation.
Imagine for a second the untimely death or disability of a partner or shareholder. Without a partnership / buy and sell agreement in place, backed by insurance, the remaining partner(s) may be forced to work with a stranger who has purchased the deceased's shareholding from the executor.
Not knowing whether cultures and ideas will clash, this has the potential of throwing operations into disarray and severely undermining the financial stability of the company. And this is just one possible scenario.
We’re one of the team
At Ginsberg Financial Brokerage we ensure that we maintain an intricate knowledge of your business and because of this, we are able to provide you with financial risk management solutions that are perfectly tailored to the individual needs of your business. We will guide you when drafting your partnership, or buy and sell agreement and advise the most appropriate insurance cover to safeguard your business assets.
What is a Partnership / Buy and Sell Agreement?
A partnership agreement / buy and sell agreement (also referred to as a business agreement) is a binding agreement between the partners or shareholders of a business which stipulates what will happen if a partner / shareholder dies, becomes disabled or elects to leave the business.
We recommend an insured partnership / buy and sell agreement to ensure that on the departure of a partner or shareholder, funds are immediately available to buy the departed partner's or shareholder's stake in the business.
Benefits of a Partnership / Buy and Sell Agreement
An insured partnership agreement / buy and sell agreement offers numerous advantages, namely:
- Provides the surviving owners with a smooth transition to full ownership of the business.
- Avoids the need to access or borrow large capital amounts to buy the deceased's share.
- Peace of mind that should you as a co-owner pass away, your family will receive due compensation for your share in the business.
- Eliminates uncertainty for all co-owners.
Ginsberg Financial Brokerage. Helping individuals and businesses prosper since 1991.
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