At CooperBurnett, we speak to businesses throughout their journey, assisting clients in the initial stages of setting up a business through to achieving their exit plan. With the new government stating its commitment to supporting small businesses, an increase in start-ups is anticipated.
At the outset, the focus for businesses remains, understandably, on establishing and growing the new business venture. All efforts and resources are poured into building a profitable business and developing a sustainable business model.
Thoughts rarely turn to succession, exit strategies or fall outs. However, this is the perfect time to consider these issues, and to address expectations, as these conversations are much easier to have when everyone is getting on.
Unfortunately, without the appropriate agreements in place, the costs of dealing with a fall out between business owners can be high, not only in terms of legal costs, but also the detrimental impact of allocating precious time and resources to resolve any issues and remedy the situation.
Impact can be alleviated by considering and legislating for different scenarios from the get-go. Limited companies can consider shareholders’ agreements and director service agreements to govern any exit. Partnerships and LLPs should consider Partnership Agreements. Keyman insurance and cross-option agreements can be put in place to protect against worst case scenarios.
Trusted tax advisers are key throughout the process, from the initial set up and as the business grows, determining the most effective and efficient manner to deal with each stage of the journey. We work closely with tax advisers to realise the maximum potential for our clients.
All plans and strategies should be kept under regular review to ensure they are suitable for the business requirements, both current and future.
If you wish to discuss this further, please do not hesitate to contact Katie Hilsdon on email: KH@cooperburnett.com or tel: 01892 515022
This blog is not intended as legal advice that can be relied upon and CooperBurnett LLP does not accept any responsibility for the accuracy of its contents.
This blog was originally published in the Tunbridge Wells Business Magazine: https://twbusinessmagazine.com/
