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Use financial planning
to create cashflow and certainty in your business
Having a business succession plan in place makes sure that the right amount of funds from the right source pass to the right party at the right time in an unexpected event.
- Is certainty and control important to you in your business?
- Have you got a contingency plan in place if one of the owners or key people was suddenly gone?
- Is your insurance cover structured tax efficiently?
RIVAL Wealth specialises in addressing the issues businesses face in relation to ownership, key people and debt protection in a simple 3 step process.
They are your one stop shop to ensure the legal and tax issues are assessed and addressed.
1. Funding the equity transfer cost between business owners
Ensure future ownership and control of the business remains in your hands.
- What happens to your business if one of the partners opts out – whether due to resignation, retirement, illness or death?
Buy/Sell Cover is the most cost effective way to make sure your business gets the funds from the right place at the right time to ensure your business ownership passes into the intended person/s.
RIVAL Wealth will ensure you have the right Buy/Sell cover in place and it’s structured correctly for your business.
2. Guaranteeing that the equity transfer occurs with the right legal documentation
The shareholder and the buy /sell agreements are between you and your partners as to what happens if a business owner leaves the business.
These are legally binding documents that guarantee the business is transferred to those it is intended to. A shareholder’s agreement is a pre-nuptial to a business relationship, and ensures all partners are in agreement as to the best business practice.
The buy/sell agreement deals specifically with the transfer of shares and funds in the event that someone is forced to leave, whether it is willingly or unwillingly.
RIVAL Wealth will facilitate a meeting with the shareholders of the business to get these agreements in place, as you will not know in advance if you are the willing buyer or seller.
3. Maintaining the value of the equity
Key Person Cover
- Would your business stall if a key person wasn’t working or earning?
- Is your debt protection cover structured tax efficiently?
Just as you insure your business assets against loss, you should insure specialist people who create business profitability.
Key person risk insurance gives you cover if any of those named key people are unable to work due to death or disablement.
Talk to RIVAL Wealth about key person risk insurance and make sure you have protected one of the biggest assets your business has... its people.
Debt Protection Cover
Nothing can cripple, or even sink, a business faster than default on a commercial loan or demand under a loan guarantee. The resulting damage may encompass not only the business entity but also its principals and family members.
According to information published by the IRD, business mortgage repayment insurance premiums are tax deductible (Section DB 5 of the Income Tax Act 2004) and the proceeds of claims are tax-free.
Talk to your RIVAL Wealth advisor about the cheapest way to cover the debt in your business in a tax efficient way.