Buy-Sell / Shareholder Agreements for Business Owners

What does a Shareholder Agreement actually DO?

As Industry Canada will tell you, a shareholder agreement (also known as a buy/sell agreement) is an agreement - in writing - entered into by some (usually all) of the shareholders of a corporation. All those who are parties to the agreement must sign it. These agreements are specific to each company, but typically deal with the same issues, such as:

~ What happens at retirement
~ How the Captial Dividend Account (CDA) will be used

~ How disputes between shareholders will be resolved

~ How insurance will be used to fund the purchase or sale between parties

~ Tax implications and advantages - who gets them and when

~ How long shareholders will continue to be paid if they become disabled. Who will buy their shares, and for how much?

~ How shares will be dealt with at death. What formula will be used for the purchase price? Will the company buy them back as a redemption, or will a person buy them from the estate?

Buy-Sell Agreement Checklist for Business Owners

Many business owners are under the impression that if they are business partners with family members an agreement isn't necessary. This could not be further from the truth, and often becomes even more important because situations can arise where you could go from being partners with your brother one day to being forced into a partnership with your sister-in-law the next.

Ultimately, shareholders have a say in the significant business decisions of the company while everyone is in the same position, healthy, and working. They are not necessary for a one-person corporation, but very valuable when there is more than one shareholder or if you are looking to bring in additional investors as you grow your business.

The content and wording in your shareholder agreement is crucial. The liability, tax, succession planning and management implications are huge. It is essential to get it right.

You need to consider factors such as (to name but a few) classes of shares, capital gains exemptions, insurance, and what type of "triggering events" will impact buy-sell procedures (death, bankruptcy, critical illness, and buy-outs).

To assist you in creating a document that works best for your business, we have created a Buy-Sell Agreement Checklist. You'll find it on our website in the Continuum II Inc. Business Owner's Resources Toolbox, full of helpful templates and tools to ensure you are making informed decisions on everything related to your business.

Women and Finance Event a Great Success!

The night: November 21st, 2013.

The guests: 16 bright and curious women of all ages and backgrounds.

The venue: Stir Kitchen Store, Brant Street, Burlington, Ontario.

The reason: Continuum II Inc. knows from experience that women aren't always involved with the investment planning and wealth management in their family, no matter how smart, educated, and able they may be. We also know how important it is for women to be empowered with the information they need to make informed decisions, plan well for their future, and feel secure. That's why we created our Women and Finance Events series, the first of which kicked off earlier this month with fantastic results!

Welcomed by Peter Andreana, CFP, and Anita Fair from Continuum II Inc., our guests were introduced to a trusted local Estate Lawyer and some fascinating speakers from NEI Investments. Along with a delicious feast prepared by registered nutritionist Sarah Powell in Stir! Kitchen Store's private kitchen and event space, attendees were treated to a wealth of information on topics as varied as estate planning and socially responsible investments.  

Guests asked a myriad of unique questions of our experts, helping them understand things like how to protect their daughter's real estate ownership and rights if a boyfriend moves in, and how more and more clothing companies are being encouraged to implement socially responsible business practices so that socially-minded investors can feel good about investing in their stock.

With so much good food and valuable info, it's no wonder we had a waiting list!

More Women and Finance Events are coming soon, so connect with us by phone or social media to stay in the loop. We'd love to see you there.

Join our facebook community.

Follow us on twitter.

Call us anytime at 905-332-6633

Budget Worksheet and Best Practices

There are many ways to reduce the expenses in your monthly budget. The most obvious is to eliminate frills.  For example, consider whether you need to buy a muffin on the way to work when you could bake a dozen every weekend for a fraction of the cost.  Make coffee at home instead of grabbing it from the drivethru window.  Wait for sales before you do your holiday shopping.

When it comes to the essentials, clipping coupons has become much more popular in recent years - and it’s easier than ever because so many deals are advertised online. Searchable sites such as www.redflagdeals.com collect and summarize discounts on goods and services across the country. Meanwhile, www.save.ca lets you order a range of coupons on brand name products that are mailed to you free of charge.

In categories such as cable and communications, consolidating services with one company can save you money through bundling. If you have several providers, call them up and ask for their best deal on the telephone, internet, and television services your family needs. While you may not enjoy playing hardball, the reality is that you will often only get their best deals by threatening to leave for a competitor, so don't be shy.  

Many Canadians can also quickly reduce their debt costs by paying off high-interest credit card balances and consolidating debt in a lower interest single line of credit.

Get your whole family involved in the quest for new saving strategies because this works best when it is a joint effort. If you have children or grandchildren, keep them motivated by rewarding them for their best ideas with a money free treat - such as a game of catch at your favourite park.

A simple budget doesn’t take much time to set up and can help you see very clearly where your money goes each month - and where there may be opportunities to reduce costs. Collect your household’s bank statements and bills and then record your expenses in categories such as those listed on the following Budget Worksheet. This will help identify where your money is going and how much you are spending monthly.  Next, turn to your income. Add it all up and calculate a monthly average for your income as well.  Lack of awareness is the single biggest obstacle to creating a great savings plan for you and your family.  Get started with this worksheet (just click to enlarge), and give us a call at 905-332-6633 when you're ready to build your wealth and put together a successful retirement plan for you and your loved ones.  For more tools & tips, visit the Continuum II Inc. Resources page of our website.  

Health and Benefits Plans: Tips and Best Practices

Navigating the world of Health and Benefits plans can seem overwhelming to a business owner.  With so many options, so many conditions, and so much paperwork involved, it can become a full-time job (just make sure it isn’t you, or your employee’s, full time job and deal with a broker that handles all the “admin” for you.)

We know how complex it can be, so to help you ensure you are making the most of the plan that you have, and avoiding common mistakes that can be costly to both you and your employees, we've developed a list of tips to help you.  To enlarge and/or print this list, simply click on each image below.

As always, if you would like further clarification or assistance, we're here to help - anytime.  Just call Continuum II Inc. in Burlington at 905-332-6633.  For more tools & tips, visit the Continuum II Inc. Resources page of our website.

How To Find The Right Financial Advisor & Insurance Broker

Finding the right financial advisor is one of life's most important tasks, whether you're a prudent individual, investing wisely for your own retirement, or a savvy business owner with more complex needs to consider like succession planning.

It's wise to explore a few different options before making a final decision on whose style, credentials, and services will best match up with what you need.

There are many factors to consider, and to help you make sense of them all, we've developed a handy checklist to help you choose the right financial planner.  Simply click on the image below if you'd like to see it in larger format and print it out.

Finding the right Insurance Broker is equally important, especially for Entrepreneurs.  As a business owner, you have a lot on your plate and time is finite.  You're building your team, your client base, and your legacy.  With such important tasks ahead of you, there is good reason to delegate what's left.  

When it comes to the Health and Benefits Plan you provide your employees, you can't be sidetracked by explaining all the details to each member of your team when they have questions, or stepping in to help during the claims process.  Even if you have a Human Resources department to help, there are always more productive ways they can contribute to your organization.  You and your team deserve to partner with a Benefits Broker who takes all the workload off of you, leaving you with more time to focus on what's truly important to your company's future.

If you or your employees are forced to deal with 1-800 numbers for questions, or you don't see your Broker at least four times a year, then you need to re-evaluate the level of service you're getting.  It could be much, much better.  And no, it doesn't have to be more expensive at all.  In fact, there's a good chance it could be less.

To help you explore whether you should be expecting more from your Benefits Broker, we've developed a short quiz:

If you would like clarification on any of the points listed above, please don't hesitate to call us at 905-332-6633.  Making sure you have the right financial advisor and insurance broker to set you up for long term success is our top priority.

For more tips & helpful tools, visit the Continuum II Inc. Resources section of our website.

Women and Finance: What You Need to Know

In our many years in business, we are often asked about the topic of financial advice for women. While in theory it seems like financial advice should be relatively gender-neutral, the reality is that is simply not the case.

There are several reasons for this. One of which is the statistically proven fact that women tend to live longer than men. Statistics Canada's most recent life expectancy stats show that - on average - women outlive men by 4-5 years.  

While this may not seem like a huge gap, imagine the amount of challenge a woman might face if, at age 79, she was never a part of the financial and retirement planning discussions in her household and suddenly needed to be responsible for it all. Financial planning can be a complex topic at any age, but certainly more so as we advance in years and are dealing with the loss of a spouse at the same time. 

If you're interested in digging a little deeper into your own future, you can try out Canadian Business Magazine's Life Expectancy Calculator for some insights into what you can expect based on factors like height, weight and physical activity.  While obviously no tool can predict the future 100%, for financial planning purposes, this is a good exercise.  How can you plan how much you need for retirement without a reasonable estimate of how many retirement years you have ahead of you?

The second reason financial advice for women often needs to be approached differently from their male counterparts is the simple fact that for many generations, the teaching of these skills were simply not part of the educational process for women, both at home and in school. In recent years, especially with the increasing average age of marriage and the improved accessibility and democratization of the investment world (thanks to online trading and online banking), women are becoming both highly educated and empowered to take control of their own finances.  

Did you know that in the early 1970's the average age a woman married was just 22 years old? Compare that with 2008 when the number had risen to over 29! Imagine how much financial management needs to happen in those 7 years as an active income-earning member the workforce.

With additional complex factors affecting many couples, such as separation or divorce, stepchildren or the family businesses, the legal details can become very overwhelming - especially if any information comes as a surprise. With women entrepreneurship on the rise, it is important to factor-in how to protect your retirement planning from any challenges your personal business may face.  Peter Andreana, one of our experts at Continuum II Inc, recently explained to The Globe and Mail how important it is to mitigate those risks. Read more of his comments for entrepreneurs in the full Globe and Mail article.

It is for all these reasons that we consistently strive to reach out to our female clients and ensure they are a true participant in their wealth management, financial planning, retirement planning, and estate planning. Leaving these matters to fall on the shoulders of just one spouse is not ideal. Being active and engaged in the process early on removes the challenge of getting up to speed later in life, and it certainly minimizes any uncomfortable surprises coming to light at that time.

We're excited to kick off the first of our Women Client Appreciation Events with a Girls Night Out & Dinner at Stir Kitchen Store in Burlington, Ontario. This special evening will combine some valuable and empowering financial planning information with a night of culinary learning led by a professional chef. Clients will be invited to bring a female friend or relative to help spread even more knowledge and awareness of these vital issues. Watch for details coming to you soon via email, or give us a call at the office at 905-332-6633 to put your name on the list for this limited space event! We will be running more of these special events for our much-appreciated women clientele in the future, so don't worry if space fills up this time!

Latest Feature Article: The Insurance and Investment Journal

At Continuum II Inc, we're always thrilled to be asked to contribute to media articles that help spread the word about how important it is to have a solid and holistic financial plan - especially when it comes to retirement.

Our recent feature in the September issue of The Insurance and Investment Journal features some great history and advice from Continuum II Inc. founder Lise Andreana, and son Peter Andreana, who has followed in her footsteps at the family business.

Find out why Lise wrote the book "No More Mac n' Cheese", how Peter "earned his own stripes" before joining Continuum II Inc., and where the name "Continuum II Inc." came from.

Read the full article here at The Insurance and Investment Journal website.