Meet Yan Chan. Yan is one of the directors of KGA Geotechnical, an engineering consultancy with offices in both Auckland and Christchurch. After more than 25 years of operation, KGA Geotechnical has grown from a small startup to a medium-sized business with a team 30 people strong.
In April 2017, one of KGA Geotechnical’s original partners retired, necessitating a restructure of the business as one shareholder stepped down, and two more stepped up to take his place.
A 3-shareholder business is vastly more complex than the more common 2-person structure––but BRAVEday was there to assist with the process. With Dean Young and the team’s help, KGA Geotechnical received tailored, expert advice on their new shareholder protection requirements, streamlining what would normally be an extremely difficult and complex process.
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The challenges
There are milestones that every company hits as it grows. The first office, the first profit, the first glowing testimonial; it doesn’t matter what industry you’re in, the pathway is much the same.
Those milestones don’t stop once you’re a well-developed business either. KGA Geotechnical is an excellent example: after 25 years of operation, growing from a small team to multiple offices across multiple locations, it went through yet another significant shakeup. One of its original shareholders decided to retire, triggering two new shareholders to step on board.
“We had a very simple and straightforward arrangement in the old entity,” explains Yan.
“When it comes to more than two shareholders, there are more complications in the arrangement, in the shareholder protection and agreement.”
The logistical challenges of such a huge change in leadership would have been difficult enough, but now the business had to contend with a significant insurance adjustment as well as broaching a shareholder exit strategy. Thankfully for Yan, he had Dean Young and the team from BRAVEday in his corner.
How we helped
KGA Geotechnical has been working with BRAVEday for the past nine years to obtain the most suitable and up-to-date business insurance and shareholder protection cover. We make a point to review the needs of our clients on an annual business to ensure their insurance is still suitable for their circumstances.
But this new change was beyond just a regular review; thankfully, Dean Young and the team were up for the challenge––and the long-term relationship, cultivated so carefully over the years, was an invaluable asset to KGA Geotechnical in attaining the best results for both the original and the new shareholders.
“[BRAVEday] had a lot of knowledge about not just the industry, but about the relationships between [the shareholders]. They gave us answers that were relevant to us––not twenty different options that didn’t mean anything,” Yan explains.
“We (BRAVEday and KGA Geotechnical) have a huge amount of respect for each other.”
The results
It was this care, attention and respect that helped BRAVEday provide simple, easy and relevant options for shareholder protection, as well as key person cover and business continuation cover. Instead of a logistical nightmare, KGA Geotechnical was able to welcome the new partners on board with a minimum of fuss and a maximum of efficiency––and ensure a great outcome for all stakeholders.
When asked if he would recommend BRAVEday to others after this experience, Yan had this to say:
“I think in my opinion, they are the best. It’s a no-brainer; yes!”
Thanks for working with us Yan; here’s to many more years of working together!
