Why consider an MLC ownership protection plan?
The world of business these days is a fast moving one, with businesses passing through different hands and ownership all the time. There are many reasons why businesses may change hands – some people simply decide to put their business up for sale because they want to get involved with something else or even retire and enjoy some downtime whilst others are forced to sell their business because of their financial situations and personal circumstances.
Another reason why a business may change hands is because the existing owner of the business dies, becomes critically ill or is disabled to a level where they can no longer run the business. In this event the business is often succeeded from one owner to the other. However, this is something that can result in a range of issues and problems without any financial protection in place and can also be very unsettling and worrying for any employees of the business.
Don't Leave Things to Chance – Protect the Future of Your Business with MLC Ownership Protection
When you take out protection such as MLC Ownership Protection (Business Succession) you can avoid leaving things to chance when it comes to the ownership of the business in the event of death, critical illness or disability of one of the owners. Without some form of effective business succession planning in place the death of an owner could mean not only huge issues for a business but could even mark the end of what was a successful business, which is why forward planning for the future is so important.
Of course, whilst a business owner is still alive and well negotiations can be made with regards to the succession of the business in situations such as when an owner retires or a buyout by co-owners may be in order. However, if one of the business owners dies things can become very difficult as the owners that are remaining may have to go through legal avenues and representatives for the deceased with regards to the succession of the business, which could prove to be troublesome if the decedent's representative is more concerned with the estate requirements than the business requirements.
One thing that any business owners needs to avoid doing is to assume that this is something that will be sorted out effectively through the constitutional documentation of the business as this is often not the case at all, as there is often no provision for a buyout. Even in cases where such as provision has been made the funding for this to actually go ahead is completely inadequate, which, once again, leaves the business and its employees at risk.
How MLC Ownership Protection (Business Succession) can help
The way in which MLC Ownership Protection (Business Succession) can help when it comes to business succession in the event of the death, disability or critical illness of an owner is by ensuring that sufficient funds are provided for the transfer of the equity of the outgoing owner to the remaining owners. This eliminates the need to try and negotiate with the representative of the outgoing owner in the event of their death and ensures that your successful business can continue to run successfully and that your employees have the security of continued employment under these circumstances.
Other MLC business protection services
The MLC Ownership Protection (Business Succession) cover is just one of a range of products that are available through MLC to provide invaluable protection towards the future of your business in the event of a range of unforeseen circumstances. Other types of protection that are offered through MLC for businesses that want to ensure security for the future, both for the business itself and for the employees and business owners, include:
- Asset protection, which protects your assets and provides your business with the ability to pay creditors if you are unable to work for a period of time
- Revenue protection, which is designed to offset loss of revenue in cases where there has been a loss of a key person who was responsible for the revenue of the business
- Business expenses protection, which provides protection to meet the fixed regular costs of your business
- Employee protection, which includes group life insurance
All too often people put all of their time, money and effort into building up a business and turning it into a big success only to fail to take out the proper and necessary protection to ensure the business is able to continue running successfully should unforeseen circumstances strike, such as illness, injury or even the death of one or more of the business owners.
This can result in years or even decades of wasted time and effort not to mention a waste of the huge amounts of money that may already have been invested in the business. However, with the right protection and policies in place you can help to secure the future of your business no matter what life throws at it as well as to ensure the security of your employees.