Joint Ventures are a great way to pool resources and serviceability to access opportunities that may not be possible individually.
Whether one party provides capital for a deposit while another provides income for serviceability or all parties provide a proportion of each, it is important to consider the possible events that could have a negative impact on the JV.
Each Investor in the JV could be instrumental to the initial commencement and ongoing viability of the Project. It is important to consider the ramifications of the loss of one or more of these Investors. A Key Investor Protection Plan and Buy/Sell Succession Plan should be considered in all JV’s.
Here at Odyssey Advisory Services, we specialise in customising a Protection Plan for each of your individual Projects.
JV – Key Person Protection
Covering the Key People within the JV is important to provide the Project with the opportunity to complete without all the members.
Some Key People within the JV/Project can be:
- Project Manager
Some of these people may also be covered via Debt Protection insurance.
JV – Buy / Sell Protection
Protecting the members of the JV, this cover can allow for effected members, or their entities, to be bought out of the Project in order for the remaining members to retain full control of the Project without interference from family members and Estate representatives that may not have the same goals as the original members.
This provides compensation to the exiting member at a pre-determined value, whilst providing the opportunity for the remaining member(s) to complete the Project as originally planned.
Each Investor in the JV could be instrumental to the initial commencement and ongoing viability of the Project. It is important to consider the implications of the loss of one of these investors. A Key Investor Protection Plan and Buy/Sell Succession Plan as well as an appropriate legal Agreement should be considered in all JV’s.
JV Debt Protection
This cover can provide the JV with the opportunity to complete its current project(s) while reducing or removing the possible interference by lenders.
Debt Protection cover is a type of Key Personal Capital insurance and provides a payout in the event of a claim to extinguish or reduce debt. This type of protection can be utilised to cover Death, Total & Permanent Disability and also some Critical Illnesses.
Our aim is to formulate a solution that minimises or negates the debt responsibility on you, your family, your estate and/or other parties in the occurrence of a claimable event.