Review Your Business Structure Before the Exit Conversation Starts

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SIRE

Step 2: Structure Review

Review Your Business Structure Before the Exit Conversation Starts

Your current business structure may have worked well while you were building the agency. That does not mean it will work well when ownership needs to change.

This is where many agency owners get caught. They assume the structure is fine because the business has been operating for years.

Why structure matters

The structure of the business affects who owns the assets, who can sell them, who controls the rent roll, who receives the proceeds and what approvals may be required.

It can also affect what happens if there is a dispute, illness, death, family disagreement or shareholder exit.

Common issues

• Sole trader arrangements may have fewer protections.
• Poorly structured trusts can complicate control and transfer.
• Multiple shareholders may create disputes if there is no clear agreement.
• Family involvement can become difficult if roles and ownership are informal.
• Missing shareholder agreements can create serious risk.

The exit test

If a buyer, family member or internal successor made an offer tomorrow, could you clearly explain who owns what and who has authority to transfer it?

If the answer is unclear, the structure needs attention before the exit conversation becomes serious.

What should be reviewed?

• Company ownership
• Trust deeds and control provisions
• Shareholder agreements
• Partnership arrangements
• Franchise restrictions
• Ownership of business assets
• Authority to sell or transfer key assets
• Control arrangements if the owner becomes unwell or dies

Plain answer

A business structure review before an agency exit helps identify who owns the assets, who controls the business, who can transfer ownership and whether company, trust, shareholder, partnership or family arrangements may complicate the exit.

Do not let the structure fight the exit

SIRE can help you identify the commercial questions to raise with your legal, accounting and succession advisers before the exit process becomes time-sensitive.

Start a Confidential Review Call 0404 331 310