Business Relationships / Structuring

We have extensive experience and a proven track record in assisting businesses which consist of two or more owners (or equity holders).  Our brief often involves the following:

  • Structuring advice

  • Documenting the business relationship.

 

Structure:  As regards which structure to use, the main considerations are:

  • Desired commercial outcomes

  • Asset protection

  • Tax (in relation to which we work with the client's accountant or other tax advisor).

Common structures include:

  • Partnerships

  • Companies (and groups of companies)

  • Joint Ventures

  • Trusts.

 

Agreements:  The types of agreements involved are usually Partnership Agreements, Shareholders and Unitholders Agreements, Joint Venture Agreements and Co-Owners Agreements.

See the article "Partnership agreements - Don’t risk going into business without one" here.

 

Business Succession Planning

 

Smart business partners work out in advance what will happen in the following scenarios:

 

  • Voluntary exit - where one or more of them wants to leave the business (or sell the business)

  • Involuntary exit - where one or more of the business partners is unable to continue to participate in the business, whether throug death or incapacity.  

 

It is best to deal with these matters at the beginning of the relationship if possible, or at least any of the partners decides to, or has to, leave the business.  At this time it is easier for the partners to work out a fair arrangement dispassionately.

Buy-Sell Agreements

Click here for an article on Buy-Sell Agreements.

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