If you own shares in your business, it’s well worth considering what should happen to them if the unthinkable occurs.
If you’re a shareholder in your business, you possibly haven’t given much thought to the future of your shares if something should happen to you. If they pass to your beneficiaries in the event of your death, will they really share your goals regarding the future of the business?
In this situation, you wouldn’t want to leave your fellow shareholders having to work with partners who have no real interest in the business, and your beneficiaries could end up owning shares that no one else is prepared to buy.
Fortunately, with a little forward planning and some good advice, you can pre-empt such a situation from occurring. We’ll talk you through the options and help put in place a solution that allows fellow shareholders to purchase your shares. While suitable arrangements can help provide clarity and continuity, there is no guarantee that shares will be sold at a particular value or that the outcome will fully reflect your original intentions. It means the business remains on firm foundations, and your beneficiaries can realise your shareholding’s market value.
This process is called share purchase assurance, and it’s something we’re always happy to discuss. We’ll advise you on the ins and outs of the process, discuss whether it’s appropriate in your situation, and if it is, we’ll help put it into practice. The suitability and effectiveness of any arrangement will depend on the circumstances of the business and the parties involved.