Business succession planning can be complex
Owners are often faced with serious issues surrounding retention of control, share purchase and replacing key persons.
A clear vision
The succession plan needs to include financial solutions to provide the liquidity necessary for liabilities and managing the handover.
You want to retain control of your business and avoid a long-lasting fallout or loss in turnover.
Retain control of your business
Planning the future of a business can be a fraught process, precisely because people’s lives are intertwined with the company. When succession doesn’t go according to plan, emotions can be heightened and the fallout long-lasting. And if a handover results in a loss of turnover, needing to replace a keyperson or repayment of liabilities, an owner could lose his ability to retain control of the company. All these issues need to be considered in advance. Swiss Life Generations can help protect the business and the owners’ freedom of choice.
Key features of our solution
Create additional liquidity
With the promise of additional liquidity during succession, you can make decisions about the future of your business with confidence.
Succession planning security
You can select the beneficiaries of the policy with confidence that your wishes will be met. This gives you complete control over your succession plan.
Flexibility & security
You can change the beneficiary at any time during the term of the contract, ensuring your policy always meets your business and personal needs.
An example - Securing the future of a successful business
Michael started a company with his best friend Henry when they finished university. Now in their 30s, they have jointly steered the start-up to a valuation of USD 15 million as majority shareholders. The 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, Michael and Henry started to wonder what would happen to their company if one of them died. As the situation currently stands, 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 would own a significant portion of the business and could interfere in its management or even force the sale of their shares.
What happens to the business?
Retaining the control of the company
With our high life cover, there is sufficient cash available for the surviving founder to pay out the beneficiaries/heirs of the deceased. If they choose to do so, they would retain full control of the company.
What happens with the insurance policy?
Setting up a policy for each partner
The high life cover provides sufficient liquidity to finance the redemption of shares should one partner die. In this instance, the company would be the beneficiary and receive the insurance benefit.
Four steps to create your future legacy
Tailor your policy to your personal goals
- Secure the future of your successful business
- Ensure you retain control over the company
- Plan for sufficient cash to pay out beneficiaries
Financial & medical underwriting
- Choose from world-class clinics
- Use our exclusive concierge services
- Absolute confidentiality is guaranteed
Choose your investment strategy
- Appoint your trusted asset manager and custodian
- Select underlying investments in line with your strategy
- Tax and legal needs are met
Adjust policy throughout your life
- View your policy anytime in ePrivateWealth
- Access liquidity when needed
- Adapt sum assured and beneficiaries as needs change
Start your legacy plan
Contact us so we can start planning your long-term goals