First Principal Financial possesses the key qualities of reputation, expertise and longevity. We look forward to continuing our relationship with you in the years ahead.
Business Continuity
Behind every successful company are key personnel whose contributions are integral to the continued success of the business. Loss of service of such key personnel through resignations, retirement, death or disability can severely hamper the future success of any company.
Shareholders have to grapple with ownership issues and other risks, encompassing:
Key Persons Planning
The success of any company rest in the people it has. Therefore the challenge of any company is to retain its key personnel. Key persons planning seeks to protect the business by making provision for Key Persons in the company. A key person may retire from the company, depart unexpectedly when death occurs, or resign due to poor health or other circumstances.
These are various compensation/retention plans, and corporate pension schemes that can be incorporated to minimise disruption to business operations:
- SERPS
- ESOPs
- Executive Bonus Schemes
- Keyperson Insurance
- Split-Dollar Arrangements
Guarantor Insurance
Guarantor Insurance Loans are often granted to companies with the personal guarantees of its directors. This exposes the family to additional liabilities that could lead to a loss in family wealth.
Guarantor Insurance Schemes are designed to protect against this exposure, with the efficient use of insurance policies, trusts, and the structuring of these instruments in a manner that preserves the family's wealth.
Buy-Sell Arrangements
Death, disability or retirement of a major shareholder in the company can pose tremendous problems for the company.
For instance,
- Who will buy over the shares and at what price?
- Will the heirs receive the full value of the business?
- Are the company loans guaranteed by the deceased shareholder?
- Can the company continue to service these loans?
- What will happen to the remaining shareholders?
- Will there be a change in culture and operations because the incumbent shareholder may want to do things differently?
For companies that will face these potential problems, we have the solution.
These cannot be taken lightly or left to the inexperienced. At First Principal, we take you through the process and highlight potential problems within your company and the industry that you're in. We can draw up a programme void of legal and financial complications. Periodic review of the programme's effectiveness is our guarantee.
Talk to us.
