Business Succession

There are many complex issues regarding business ownership succession in the event of a business owner’s sudden and unexpected departure, for whatever reason. These issues should be considered by any business with multiple owners, regardless of whether it is structured as a Pty Ltd company, partnership or trust.

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A well-structured business succession plan ensures the smooth transition of business ownership and provides certainty to all parties, within a legally binding buy-sell agreement. Not all possibilities for the unexpected departure of a shareholder can be insured, however insurable events include Death, Total and Permanent Disability and Diagnosis of a Critical Illness, Key Person Insurance.

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Key Person

The continued success of businesses of all sizes often depends substantially on the knowledge, intellectual capital, skill, experience, initiative, personality and contacts of one or more essential people. 

 

Key Person Insurance is insurance on the life of such a person, with your business receiving the policy payment in the event of losing that person through death, permanent disability or critical illness.

Just as any prudent business would insure valuable assets such as plant and equipment, stock, motor vehicle fleets or premises, it is equally important to insure your ‘human assets’. The impact of losing a significant person could be more devastating than losing other more tangible assets.

Please contact us for a no-obligation free consultation on business succession planning.

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Business Expenses

Business Expenses insurance is similar to income protection in that it pays out a monthly benefit in the event of disability from any cause, often covering the fixed running costs of a business. It is appropriate for a sole trader or a small partnership, or any business which relies heavily on one or two key people to generate ongoing revenue.

Although a sole trader may have put income protection insurance in place to cover their own income and pay personal bills, if they are not working due to a disability, they also need income to continue to flow into their business to pay fixed expenses such as staff wages and rent.

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With these core expenses covered, the business can function and be ready for their return to work or in the worst case, if that person is unable to come back, it provides a buffer to ensure the orderly closing down or sale of the business.​

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Project Adviser

In line with our Business Succession advice, where a client is unfamiliar with the process of setting up Shareholder and/or Business Succession Agreements, arranging Business Valuations and managing the process from begininning to end - Oakmont has a solution.

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With our expertise in this area and the associated complexities, in addition to providing insurance advice Oakmont offers a Project Management service where an adviser will:

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- Analyse Financial Statements

- Assist in reviewing or arranging Legal Agreements

- Assist in review or arranging Business Valuations

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We have found this to be an invaluable offering, as the insurance is only is good as the agreements and justification that sits behind it. By taking this responsibility on, it allows the clients to focus on their business with the peace of mind knowing that everything has been set up correctly.​