Case Study, Family Business
Businesses in which family members are involved can create issues for the business if they are not dealt with clearly and succinctly so that everyone knows where they stand. Take the example of a primary industry business in which three brothers and their wives were in business together. There were several notable issues from the outset, including there being no clear cut plan about what would happen to the company if one of the family members died.
Using a combination of business strategy and insurance to minimise risk to the business, Trilogy Financial Group clarified the ownership structure, identified the key people driving the business, valued the business and its assets, and implemented an involuntary business succession strategy. It then developed a voluntary succession strategy given that one of the brothers was approaching retirement age. All these initiatives were backed and supported by legal agreements that all family members understood and agreed to.