Answered by Tom Conner
Any business that has an element of recurring profitability has a value attached to it which should be protected in the event of a shareholder death. There are various methodologies applied to valuing a business depending on its type and size.
More often than not we will work in consultation with the company accountant to place a suitable value on your business and shareholding for the purpose of shareholder protection insurance. One of the most commonly accepted methods of valuation would be applying a multiple to the net profit of the company, basing your shareholder insurance cover on your proportion of the total shareholding.
It is important to recognise in addition to the valuation of the business to ensure the relevant trusts are in place to ensure your shares are dealt with accordingly. As part of our consultation process we will help you put in place all necessary trusts, with suitable executors appointed and a legally binding Cross Option Agreement which ensures that the wishes of all parties involved are adhered to.
Frequently Asked Employee Benefits Questions
I would like to say thank you to Ciaran King for his professionalism, respect and sensitivity with dealing with my income protection insurance.
Was extremely impressed with the service we received from Michael. He was so helpful with good advice and saved us money. The policy was set up and running with in a couple of days. Would definitely recommend to friends. Thank you.
Sam Carr was very knowledgeable, efficient, called when he said he would and kept me updated through out the process.