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Is your business partner protected?

It is Saturday morning and it seems to have been raining forever!  I was up early to play golf only to find that our course was closed due to all the recent rain and the fact that the green keeper couldn’t guarantee that an ambulance could be driven to the far extremities of the course in case of emergency. I’m not going to have an emergency I thought! …..And that is what many businesses in the UK also think according to a 2011 survey conducted by Legal and General and the Institute of Directors that identified a business protection gap of £1.1 trillion!! And a startling 39% of businesses believed they could not survive more than 18 months following the death or critical illness of a key person.

The majority of the businesses surveyed had at least one key individual. 57% of Public Limited Companies (PLCs) said they were also reliant on a small number of key people who were the main drivers of their success and profits, showing that even the bigger corporations still need protection. The good news is that the limited companies surveyed seem to have a good understanding of business protection, with over a third having created a formal agreement to cover what would happen on the death of a business owner.

However, that still leaves nearly two thirds of businesses without any formal agreements. And running your own business may leave you little time to consider your financial future. You may have protected the tangible assets of your business such as premises, machinery etc: but have you protected the most important assets, the people?

For example, have you considered………….

What would happen to your business if a director or partner dies or becomes critically ill?

Not only would there be a loss of experience and expertise but what happens to their share in the business?

Can you afford to buy their shares without having to take out a loan or by selling assets?

Is there an agreement in place that will allow you and the other shareholding directors to buy the shares?

These are just some of the issues you may be faced with should the worst happen.

At Lyndhurst Financial Management Ltd, we offer a range of effective solutions to help meet the needs of businesses such as yours. We work closely with local businesses and help to ensure that should the worst happen, they will not have to rely on external sources to maintain their business and continue to profit.  If you would like to discuss any concern you may have regarding your business call Sandra Harrington at Lyndhurst Barnet office on 020 8447 5592.

But it is not only businesses that should consider whether they are adequately protected; parents should also consider what would happen to their children in the event anything happened to them. Again a call to Sandra should put your mind to rest.

Geoff Newman


Lyndhurst Financial Management Limited


Authorised and regulated by the Financial Services Authority


Geoff Newman
About Geoff Newman (35 Articles)
Helping you to plan your future, financially for peace of mind