Key Person Risk Management
Key people interact with various entities who have relationships with the company. They create confidence by virtue of their image and their involvement with the company. This confidence is reflected in the company's market value and in the relationships created with customers, creditors, suppliers, investors and the management team.
To attract a high-calibre team, a start-up needs to provide competitive compensation packages. Such packages often include a comprehensive employee group benefits plan.
Shareholders' Risk Management
Providing liquidity and control at the death, disability and/or dissolution of a shareholder can guarantee the successful continuation of the business. A forced sale of shares can hinder the performance of a company, reduce the operational cash flow and reduce the value of all outstanding shares.
Consideration must be given to a shareholder's personal estate and tax planning and the impact on both the company and the shareholder's personal net worth. The interaction of the shareholder's corporate investments have an impact on his or her personal objectives. Both corporate and individual objectives should be considered to ensure the objectives are not opposed.
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