Business Value Protection Trust

In every business, operations are usually smooth until one co-owner passes on or want to exit. When this happens, how can one maintain balance and continuity while exiting at a fair value?

• If a co-owner dies today, can you work with his family to run the business?
• Will the co-owner’s family members know how to run the business with you?
• Can they work well with you?
• Would your beneficiaries be able to get a fair price?
• Do you have the funds to buy out the co-owner’s shares/interests from the family members when there is no pre-agreed price in a written agreement?
• Can the shares/interests you are purchasing be transferred quickly to you?

PROBLEMS WITHOUT BUSINESS PROTECTION PLAN

• A new partnership is created due to the inheritance of the shares/interest by inexperienced heirs. Chances are this new partnership may fail.
• There is no pre-agreed price for any sale to take place when the heirs decide to sell to the other co-owners. As a result, it may take years to settle a transaction price.
• Some of the unqualified heirs may insist on being directors of the company and be active in running the business. This may lead to serious disruptions and disputes within management.
• It is possible that the co-owners may decide to abandon the business and start their own due to disputes with the heirs.
• Loss of profits and uncertainty about the business future success.

After all your hard work in building your business, you need to avoid such problems.

THE SOLUTION - UBIZ: BUSINESS VALUE PROTECTION TRUST

Our UBiz ensures a smooth transition of the business to the other co-owner(s) and the value of your share of the business is protected against an event such as:-

• Death
• Bankruptcy
• Incapacity
• Divorce
• Ill health
• Loss of professional license
• Retirement
• Deadlock between co-owners

• Buy-Sell or Cross Option Agreement: covering the terms of the sale and purchase including the agreed value or formula, events triggering a sale, funding and mode of payment.
• Power of Attorney: authorizing us, Rockwills Trustee, to transfer the shares/interests to the other co-owner(s) upon the occurrence of the agreed events that trigger a sale.
• Trust Deed by the co-owners: instructions to Rockwills Trustee regarding the periodical distribution of the sale proceeds to prevent these being misspent by the beneficiaries.
• Life insurance policy: as the main funding mechanism to purchase the shares/interest of the outgoing co-owner.

How to set-up?

When an event occurs triggering a sale?

ADVANTAGES OF UBIZ

• Guarantees the sale of shares/interest at a full and fair value that was agreed by co-owners.
• Prevents inexperienced and unqualified heirs from being involved in the business or the selling of the deceased’s shares to outsiders.
• Smooth transfer of ownership to the co-owners is ensured by the Trustee.
• Using life insurance, the purchase of the shares/interest becomes very affordable, minimizing the need to use your savings for the purchase.
• Rockwills Trustee acts as the Trustee for UBiz protecting the interests of your beneficiaries and that of the co-owners.
• Shares/interests are easily converted.