Our client started a company with his best friend when they finished university. Now in their thirties they have jointly steered the start-up to a valuation of USD 15 million as majority shareholders. Both founding partners currently hold 66% of shares, with a venture capital fund owning the remaining 34%.

With such a small and tightly bound relationship at its core, our client and his partner started to wonder what would happen to their company if one of them died.

With things as they currently stand, a death of one of the founders could significantly impact the ability of the other to retain control of the company. The family of the deceased could begin to interfere in the management of the business, or even force the sale of their shares. 

Our solution: tailored succession planning

We support our clients so that they build their businesses and work towards securing financial freedom and confidence for their families. By prioritising flexibility and security, we ensure that every succession process is aligned to our client’s own choices.

A Swiss Life Generations (SLG) policy set up by the company for each of two partners would provide sufficient liquidity to finance the redemption of shares in the event of one of the partner’s death.

We suggested that each partner take out a SLG life insurance policy as policyholder and insured person. Upon the death of one of the partners, the beneficiary (i.e. the company) receives the insurance benefit. Due to the high death coverage, there is sufficient cash available to make sure that the surviving founder is able to pay out the beneficiaries/heirs of the deceased and therefore retain full control of the company. 

Benefits

Tailored
The partners can make sure that the succession process is suited to their needs and goals.

Flexible
The beneficiary of the policy can be changed at any point during the term of the contract.

Secure
The benefits of the policy are always directly transferred to the designated beneficiary.