Nick Fanto
Joanna Oakey
About Our Guests
Nick Fanto is the Director of Orbital Life, a life insurance advice firm based in Sydney CBD. They provide tailored life insurance advice and strategies to both business owners and individuals.
Orbital Life are vastly experienced in Buy Sell and Key Person insurance strategies and offer comprehensive insurance claims management services.
Award winning commercial lawyer and Managing Partner of Aspect Legal, Joanna Oakey has worked with thousands of businesses and business owners (and their advisors) as they acquire, grow, and exit.
With more than 20 years experience, she has worked as a trusted legal partner for businesses of all sizes and industries, from small startups as they catapult in value, through to large national and multinational brands. She has seen many business owners spend years and years building a business that has no value at exit, or worse, really good businesses that hit a legal landmine and fall into a hole they never recover from.
About this Episode
Breaking Up with Your Business Partner
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.
What you will learn in this episode
- 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
Connect with Nick and Joanna
LinkedIn: https://www.linkedin.com/in/nickfanto-lifeinsurancespecialist/
Website: https://www.orbitallife.com.au/
LinkedIn: https://www.linkedin.com/in/joannaoakey/
Website: https://www.aspectlegal.com.au/
Show Notes
(04:23) Breakdown of business partner relationships is tragic. Mitigate risks with Shareholder Agreements.
(13:59) Having a Shareholder Agreement helps with asking important questions, guiding decision making and setting expectations for equity holders and exit strategies.
(23:47) Annual review of business value crucial for insurance policy, while Shareholder Agreement is necessary for legal protection.
(36:00) The key question is how to start and manage discussions effectively and avoid problems. It is important to identify and address issues early on.
(44:32) Structuring buy-sell insurance depends on business structure. Self-ownership is recommended for the cleanest structure. Policy payments go to respective estates, tax-free transaction.
(55:13) Know their personal wishes. Shareholder Agreements involve different parties and may affect personal preferences in estate planning.
