Involved in family business

Businesses in which family members are involved can create issues for the business if they are not dealt with clearly and succinctly so that everyone knows where they stand. Take the example of a primary industry business in which three brothers and their wives were in business together. There were several notable issues from the outset, including there being no clear cut plan about what would happen to the company if one of the family members died.

Using a combination of business strategy and insurance to minimise risk to the business, Trilogy Financial Group clarified the ownership structure, identified the key people driving the business, valued the business and its assets, and implemented an involuntary business succession strategy. It then developed a voluntary succession strategy given that one of the brothers was approaching retirement age. All these initiatives were backed and supported by legal agreements that all family members understood and agreed to.

During this process, Trilogy identified a number of issues connected with the self-managed super fund. Using pre-emptive action to ensure the SMSF was compliant, Trilogy saved its client approximately $1m in potential penalties. This in part required the client to change their asset structure, sort out tax and finance issues, value property, and arrange water rights. Trilogy negotiated these issues with the family’s accountant and banker.

The outcome has been brilliant for the family. The fees charged for this service were paid back in improved financial practice across the business almost immediately. All have the security of knowing that their assets are protected and working in the best interests of the family’s business and well-being. With the proper financial structures in place, they have the certainty of knowing how they will tackle future challenges to the business.

If you would like to experience this same sense of clarity and certainty about your financial future, make the first step and call Trilogy today to arrange a meeting with one of our adviser teams.