The short answer
Nick Fanto and Joanna Oakey unpack the mechanics of business partnership breakdowns, including shareholder agreements, insurance strategies, and the negotiation dynamics that protect or destroy value when co-founders part ways.
Key takeaways
- Why key business partners matter
- How a key person insurance acts as a safety net
- Why Shareholder Agreements are vital for business transitions
- Navigating challenges in business partner breakdowns
Listen to the podcast
1 hr 3 minWatch the full interview
About this episode
In episode 98 of the Buy Grow Sell Podcast, I sit down with Nick Fanto from Orbital Advisory and Joanna Oakey from Aspect Legal to discuss the complex challenges that arise when business partnerships go sour.
Nick shares personal experiences and valuable insights into the importance of planning for unforeseen circumstances, such as illness or injury, which may impact the key revenue-generating individuals in your business. Together, we discuss the critical role of key person insurance and the significant financial benefits it can provide in times of need.
We also address the crucial need for a well-documented Shareholder Agreement, which can help resolve disputes, protect interests, and ensure a smooth transition in the event of an exit. Throughout the episode, you will discover real-life examples, practical advice, and stories that highlight the necessity of addressing these issues proactively.
Don’t miss out on this informative discussion that will equip you with the knowledge and tools to safeguard your business and make well-informed decisions in challenging times.
Chapters
- 04:23Breakdown of business partner relationships is tragic. Mitigate risks with Shareholder Agreements
- 13:59Having a Shareholder Agreement helps with asking important questions, guiding decision making and setting expectations for equity holders and exit strategies
- 23:47Annual review of business value crucial for insurance policy, while Shareholder Agreement is necessary for legal protection
- 36:00The key question is how to start and manage discussions effectively and avoid problems. It is important to identify and address issues early on
- 44:32Structuring buy-sell insurance depends on business structure. Self-ownership is recommended for the cleanest structure. Policy payments go to respective estates, tax-free transaction
- 55:13Know their personal wishes. Shareholder Agreements involve different parties and may affect personal preferences in estate planning
The Newscast
How to value, grow and exit your company
Get two useful emails each month: founder stories and lessons in the Buy Grow Sell Newscast, plus the latest small and mid-market M&A insights in The Wire.
Related episodes
Connect with Nick Fanto and Joanna Oakey
About the show
Buy Grow Sell is hosted by Simon Bedard, founder and managing director of Exit Advisory Group, a boutique mergers and acquisitions advisory firm that helps Australian business owners value, prepare for and navigate a sale. Every conversation draws on real deals and the patterns behind them.
