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
- It guarantees the sale to be done since it have been agreed upon.
- 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)
- 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
- It can convert non liquid business interest provide liquidity: those share that can’t be converted to provide money for family
- Business owners can run the business without interference from the family of the deceased
- Heirs are free of the hassles of managing a business they don’t know while at the same time guarantee an income.
- 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.
