Buy-and-sell funding
Consider how surviving owners could fund the purchase of an interest after a qualifying event. The agreement, valuation and insurance arrangement must work together.
03 / Business
Protect the business. Protect what follows.
Your business may be your income, your largest asset and part of your family’s future. Its financial risks deserve a deliberate plan.
Assess My Business Risk
The planning question
Why business planning matters
Ownership documents alone do not create liquidity. A continuity plan should connect the legal arrangements, the funding need and the people who keep the business operating.
What Sentinel assesses
- Ownership, shareholder and partnership arrangements
- Reliance on key people and specialist skills
- Business debt and personal sureties
- Existing agreements and funding gaps
- The owner’s personal protection and succession objectives
A structured review
The areas we consider.
Key-person exposure
Assess the financial impact of losing someone whose skills, relationships or leadership are material to the business.
Debt & contingent liabilities
Review debts, guarantees and sureties so you understand who may remain responsible if an owner dies or becomes disabled.
Continuity & succession
Plan for decision-making, control and the transition of ownership. Legal, accounting and financial advice may all be required.
Overheads & employee needs
Identify fixed-cost exposure and employee or group-risk needs for further assessment. Any proposed cover is subject to available provider arrangements and the relevant advice authority.
An Old Mutual AFD
Sentinel is your adviser relationship.
Our Old Mutual AFD relationship provides the institutional and product environment in which we work. Your adviser explains the relevant options, provider, terms and costs before you decide.
Product availability and suitability must be confirmed for your circumstances. This page explains planning needs; it is not a promise of cover, investment performance or a particular product feature.
How advice becomes action
Consultation. Strategy. Implementation.
A personal adviser relationship, with ongoing reviews built into the conversation.
- 01
Consultation
Understand your goals, risks and current financial position.
- 02
Strategy
Set priorities and explain suitable options, costs and trade-offs.
- 03
Implementation
Coordinate the agreed arrangements and provider requirements.
- 04
Ongoing review
Revisit the plan as your life and business change.
Who this is for
A plan that fits your responsibilities.
Business owners, partners, directors and shareholders who want personal wealth and business continuity considered together.
Private Wealth. Protected.
What would happen if a key owner could not return?
A little more clarity
Your questions, answered.
01What is key-person insurance?
It is insurance arranged to address a business’s financial loss following an insured event affecting a key individual. The owner, insured person, benefit and funding need must be structured appropriately.
02What is a buy-and-sell agreement?
It is an agreement governing how an owner’s interest may be bought and sold after specified events. The legal terms and valuation method should be agreed separately from the funding arrangement.
03How is a buy-and-sell agreement funded?
Funding may include insurance, cash reserves or other agreed finance. Where insurance is used, ownership, insured amounts, beneficiaries and events should align with the agreement.
04What happens if a shareholder dies?
The company documents, agreements, estate administration and funding arrangements determine the next steps. Without a coordinated plan, ownership and cash-flow issues can arise.
05Why does a business need succession planning?
Succession planning clarifies who takes responsibility and how ownership or control may change. It should consider the practical handover as well as legal and funding arrangements.
06Can business debt affect my family?
It can, particularly where personal guarantees or sureties exist. The effect depends on the agreements and estate circumstances. Review these documents with suitable legal and financial advisers.
07Is business assurance the same as commercial short-term insurance?
No. Business assurance generally concerns people, ownership, succession and related financial risks. Commercial short-term insurance addresses specified asset, liability and operational exposures under its policy terms.
08Are business assurance premiums tax-deductible?
There is no blanket answer. Tax treatment depends on the purpose, ownership, beneficiary and applicable law. Obtain advice on the actual arrangement before assuming any deduction or tax outcome.