One of the partners of a private equity firm, which manages assets worth US$3.8 billion and has a team of 50 employees across Singapore, China, Indonesia, the Philippines, and Vietnam, approached Alfred with concerns about business succession and exit planning. The partner wanted to ensure that in the event of the demise of any partner, the surviving partners would be able to buy out their shares at a fair value, allowing them to continue the business without the need for external partners to join them. Additionally, the family of the deceased partner should be fairly compensated for the value of their shares and should not be required to be involved in the business.
To address these concerns, we implemented a partnership agreement that outlined the various exit possibilities for each partner and how their shares would be treated in the event of their demise or disability due to an accident. Furthermore, we set up a business value protection trust, which included a corporate trustee to oversee the exchange of shares and compensation, adding an additional level of governance to this arrangement.
