SME Situations
Protecting the shareholders – Module 2 (BIZ2)
Overview
When a Shareholder leaves a business, how can he retrieve the value of his shares? How can he give his shares to the remaining shareholders in exchange?
Highlights
CROSS-PURCHASE AGREEMENTS
This is the most common form of agreement and how trigger events can be defined. How insurance-funded plans work.
ANATOMY OF A BUY-SELL AGREEMENT
We look at excerpts of an actual agreement to learn how shares of the departing shareholder are exchanged for funds, and how trigger events are defined.
USING A TRUST TO HELP SECURE PERFORMANCE
A trust can hold funds and insurance policies so that when a trigger event occurs, the trustee can oversee the exchange of shares and funds.
Curriculum
- What is a Buy-Sell Agreement (BSA)?
Typical contract terms
Trigger events
Funding the BSA - Anatomy of a basic BSA
Parties in the BSA
Using a Trust with the BSA - Some Outlier Situations
Large difference in age
Large difference in shareholding
Large difference in insurability - Other matters
Valuation
Approaching SMEs for Planning
Course Fees
Online Training
$1,000/person
$100*/person
*After 90% IBF Subsidy.
*Terms & conditions apply. Valid till 31 December 2021.
In-Person Training
$1,200/person
$120*/person
*After 90% IBF Subsidy.
*Terms & conditions apply. Valid till 31 December 2021.
Course Duration
8 hours over 1 day or 2 half days.