Protecting your Business

Apart from a major fire or similar event, one of the worst disasters that can hit any business is to lose either a director/partner or a key employee, through death or long term illness.

In the former case, the business can be threatened by the introduction of a new part-owner, whose objectives may be very different from the original team. There could also be issues of confidence in respect of clients, suppliers and the bank; making it difficult to carry on without the injection of sufficient capital to recruit a suitable high calibre replacement.

The loss of a key employee can also have ramifications in terms of the need to replace the function fulfilled. There will naturally be a period of uncertainty during which clients can be lost and recruitment costs can be high – not to mention the fact that a replacement capable of “hitting the deck running” could demand a much higher salary than the previous incumbent.

We can help you identify the possible financial consequences of losing a key team member and recommend arrangements to minimise the impact.