Friday, March 26, 2010

BUSINESS VALUE PROTECTION

  1. Do you own a business (i.e. sole proprietor, partnership, sdn bhd)?
  2. Are you concerned with the survival of your business in the event of something happens to you or partner(s)?


Purpose :



  1. To protect the value of your business when one business owner exits.
  2. To provide for the smooth transition and continuity of business interests to the surviving business owners when one of the shareholders pass-away, suffers from critical illness or total permanent disability.


Issues will arise when a business owner exits, in particularly upon the untimely death/critical illness/total permanent disability of a business owner. Among them are:



  1. Inheritance by heirs – are the heirs capable or interested in the job?
  2. Difficulty in selling the business interest – does fire sale ever attracts fair value?
  3. Financial difficulty for the family – potential lack of funds to meet financial obligations?
  4. Serious disruption – inclusion of outsiders or inexperienced heirs may cause havoc to business
  5. Closure of business – surviving business owners may decide to abandon business and start afresh


What are BENEFITS of a Business Value Protection?


1. Guarantees full and fair value


2. Pre-agreed pricing


3. Quick and smooth transfer


4. Conversion to liquid income


5. Independent referee to execute the necessary transfers


6. Business continues as normal without disruption


7. Prevent wastage of sale proceeds


Business Value Protection is a MUST-HAVE for all businesses.


How to do it?


For more information, please do not hesitate to ask for a free consultation from NICKG Advisory Services, nickg74@hotmail.com (or) gloriouscash@live.com


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