BUSINESS EXIT AGREEMENTS<br />(It’s hard to make money without one but getting one needn’t be hard)<br />Presenter:<br />Ian Tindale – Director – redchip lawyers Pty Ltd<br />firstname.lastname@example.org<br />Ph: (07) 3852 5055<br />
Agenda<br /><ul><li> How to get a Business Exit Agreement (“BEA”)
Ensure you are comfortable that you can initiate the legal process of getting your clients a BEA</li></li></ul><li>What is Business Exit Planning?<br />Providing for your departure from your business, whether it is your decision or not.<br />
Types of Business Exits<br /><ul><li> Administration/liquidation
Subsequent reviews (annual)</li></li></ul><li>How to engage a lawyer<br />Q1. Who is the lawyer’s client?<br />Q2. Who gives the lawyer the instructions?<br />Q3. To whom is the lawyer responsible?<br />Q4. Who pays the lawyers bill?<br />Answer: Your Client<br />You need to have your client engage the lawyers to prepare the BEA<br /><ul><li> You need to be pro-active for your client and assist them to find a lawyer who can do this work.
You should then arrange the initial meeting with the lawyers and your client and you must attend.
You must be involved in the information gathering process.
The advice of all advisors must be consistent – so share it.
You must make sure it happens.</li></li></ul><li>Work Flow Sheet<br /><ul><li> See hand out.
If used properly, you will achieve your objective.</li></ul>Remember<br /><ul><li> Clients will take out the insurance – without signing a BEA.
Client’s won’t sign a BEA without taking out the insurance
Aim is to complete the process – to ensure client gets required outcome</li></li></ul><li>What information does <br />a lawyer require?<br />See Business Exit Agreement Checklist<br />What issues will a lawyer confront and need to advise on?<br /><ul><li> What is the business structure?
What about other business succession scenarios?</li></li></ul><li>What’s next?<br /><ul><li> Written advice from lawyer</li></ul> - confirming facts and history<br /> - describing business structure<br /> - advising on all relevant issues listed in previous slide<br /> - summary of how BEA works<br /><ul><li>Prepare BEA – lawyer
Don’t abdicate responsibility for BEA to a lawyer
Use the workflow sheet for each client matter and see it through to completion
Make all parties accountable for doing their part of the process</li></li></ul><li>Close<br />Feel free to contact redchip if you have any queries or need help.<br />Remember<br /><ul><li>clients will buy insurance without a BEA
client won’t sign a BEA without insurance</li></li></ul><li>Structures<br />Partnership of individuals<br />Company<br />– shares held by individuals – directors<br />– sharesheld by spouse<br />– shares held by family trusts<br />Unit Trust & Trustee<br />– units held by individual<br />– unitsheld units by family trust<br />– trustees – individuals<br />– trustee is corporate (see above for company variables)<br />
Structures<br />Partnership of discretionary trusts<br />– individual trustee/s<br />– corporate trustee/s<br />– same corporate trustee <br />