Key person cover
The death or serious illness of a key director or employee can have far-reaching or even disastrous consequences for a business.
It can result in:
- Loss of profits
- The recall of loans
- Reduced capacity
- Loss of key clients/contacts
- Reduced practical know-how
Samuels Financial can advise you about how to secure a cash sum that will enable your business to survive in the short term while you deal with the immediate effects of the loss of a key person within your organisation. Over the longer term, finance can be made available to subsidise profits whilst a replacement is recruited and gains the relevant experience.
Partnership and Share Purchase Assurance
Partnerships and small private companies may run extremely well under normal circumstances, in no small part due to the long-term relationships and goodwill of the shareholders and partners themselves. However, in the event of one of them becoming seriously ill or dying, major difficulties can ensue for both the family and the partnership.
Partnership and share purchase assurance are designed to provide for such a contingency and thus ensure that the family is properly provided for, and that the business can continue to run smoothly.
Partnership assurance and share purchase arrangements operate by
- Allowing the continuing partners to buy their colleagues’ share in the business and thus ensure control and ongoing operation.
- Providing a reliable way for the afflicted partner (or widow / heir) to obtain a just commercial purchase price for that person’s share of the business.
By planning and putting proper arrangements in place now, the family can spend their time and effort recovering from the shock of the event rather than seeking an elusive buyer or price for their shares. In addition, the partners can concentrate on moving the business forward.
Shareholders
As a shareholder your focus is on working with your fellow shareholders to make your business successful. If you were to die, would your beneficiaries share the same goals for the business? Your fellow shareholders may have to work with partners who have little or no interest in the business and your beneficiaries will own shares with no ready buyers.
Samuels Financial can identify your specific requirements and discuss potential solutions that will provide your fellow shareholders with the means to purchase your shares and allow your beneficiaries to realise the market value of your shareholding.
