The Advantages of Setting Up of Business Value Protection Trust

For business formed under partnership or with multiple shareholders, many owners never think of the exit plan. What if a director passed away? What if a partner wants to withdraw? What if a shareholders prefer to sell his/her share to a competitor? As an entrepreneur, you don’t want to face this situation. And you won’t need to if you have a Business Value Protection Trust (BVPT) in place.

Mr. Azhar Hew, Senior General Manager from Rockwills Trustee Bhd. shared about the advantages of BVPT in the following video:

Advantage of Business Value Protection Trust

  1. It guarantees the sale to be done since it have been agreed upon.
  2. Pricing is predetermined and prevent any further talks for agreement as the agreement earlier had provided for it. (ties with the first one to provide certainty)
  3. When the sale is going to take place using power of attorney there is a smooth and quick transfer by the Trustee using power of attorney to the buyer
  4. It can convert non liquid business interest provide liquidity: those share that can’t be converted to provide money for family
  5. Business owners can run the business without interference from the family of the deceased
  6. Heirs are free of the hassles of managing a business they don’t know while at the same time guarantee an income.
  7. With the right condition specified in the trust it prevents beneficiary from misusing or misspending which the seller works so hard for

To sum it up it ends with a win-win situation for everyone.

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