Pri-Niaga

Pri-Niaga = Planning in ensuring a smooth transfer and succession of business interests in anticipation of certain triggering events.

Concept

Planning of exit strategies in anticipation of death, disability, critical illness or retirement in order to :

  • Ensure a smooth transfer and succession of business interests.
  • Protect and preserve the value of the business when business interest are sold.

With Pri-Niaga, the matters to be considered are as follows :

Agreements on business value.

Triggering events are clearly defined.

Creation of funding mechanisms.

The distribution of the sale proceeds to be decided by the business owner.

Advantages of Pri-Niaga :

  • Selling price of shares is pre-agreed by shareholders / business partners.
  • Financial security for heirs.
  • Funding mechanism for purchase of shares is pre-determined.
  • Heirs will not involve in the business (if not interested) as the remaining shareholders will purchase their shares and take over the business.
  • The business carries on and relevant suppliers / creditors can be assured of continuous trade with the existence of the business.
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Without Pri-Niaga :​

Remaining business partners may face difficulty in raising funds to purchase the shares of the deceased. Heirs will take an active role in the business :

  • May suffer from lack of experience.
  • May not get along with the remaining business partners / conflicting views on the running of the business.
  • May have a lack of interest in the business.

Why Let Others Determine Distribution of Your Assets When You Depart?

You have the right to choose the administrator of your estate and its plan of distribution upon your demise.

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