Corporate transactions - are you considering all the risks?
22nd March 2017
Our team recently attended the Northern Ireland Dealmakers Awards. This event celebrates the past years best corporate transactions such as company
sales, acquisitions, management buy-outs to name just a few.
A number of our clients and referrers were in attendance with some picking up awards.
Why are top solicitors and accountants happy to use us for the business protection needs of their clients?
We believe our professional chartered accountancy background places us in a unique position where we offer pertinent advice on a transaction
whilst having a first-hand understanding of the dynamics of a corporate transaction.
There are a multitude of areas where business protection insurance can mitigate real financial risks during corporate transactions such as:
- New Debt - when debt is utilised to purchase a company or fund growth, generally the funder will require life insurance on the main individual(s)
who deliver the returns.
- Service Agreements - the key individuals will most likely have service agreements for a period post acquisition. This will set out the "rules"
to ensure they act in the best interests of a new owner.
However, what happens if they are struck down by a tragic life event such as death or critical illness? We specialise in implementing key person
insurance policies to provide a financial safety net for the business owner to protect their investment.
- Shareholder Agreements - the death clause sets out how shares are to be treated following the death of a shareholder.
However, what cash is available in the business to fund this? By utilising an appropriately set up insurance policy, the funds can be
provided on a timely and tax efficient basis to maintain control of the business for the surviving shareholders whilst allowing fair value
to be provided to the deceased's estate.
Call us on 02838 338000 or email firstname.lastname@example.org to get in contact with one of our
experienced business protection specialists.