Business Financial Planning

• Business operates in the guise of a number of different legal structures which, amongst other things, dictate tax regimes, determine perpetual succession, liability and the interplay between management and the shareholders.  
• Integration of all these aspects with financial planning provides the opportunity for optimal management of the risks and the interests of all stakeholders. Opportunities include:
• Buy-and-sell arrangements to ensure that there will be continuation of the business upon the death or disability of a co-owner and that the disposal of the deceased/disabled shareholder’s business interests are dealt with in an orderly manner.
• Key person protection for the purpose of compensating a business for the loss of income it would suffer in the untimely event of an employee‘s death or disability. The monetary benefits received can then be used to mitigate disruptions to the business, protect credit facilities and provide funds to recruit and train a replacement.
• Contingent liability protection to mitigate the risks of the estate of a  guarantor being targeted after death, ensuring that:

o   the administration of the estate is not delayed

o   the estate is not depleted of all liquidity

o   the lifestyle of dependents is not affected

o   business assets are not sold unnecessarily

• Credit loan account protection to ensure that any outstanding amounts due to a deceased stakeholder are repaid, the lifestyle of the deceased’s dependants is unaffected and that the continuity of the business is not impacted by the unnecessary sale of business assets to settle the loan account.
• Asset replacement provision for the future maintenance or replacement of the assets
• Preferred compensation schemes to motivate and retain employees  with tax-free bonuses every five years and eliminate the cost of staff turnover and reduced productivity.