BACKGROUND A business owner who came to see us recently was thinking he needed to plan for his retirement sale but did not know how best to go about it. The initial discussion was about looking after his team through share options and we were told he had recently had an approach from a competitor. […]
Protecting yourself against the V-F MBO risks
For most business owners a sale to a third party at the time you want to sell and for the price you want is at best very uncertain. At worst it can be a wholly unrealistic ambition. Any sensible buyer of your company will be very cautious. Their advisers will warn them of the risks […]
The Vendor Funded MBO: A great way to grow and sell a people business
Would you like to be able to sell your business to a trusted buyer, for a price agreed in advance and at a pre-agreed time that suits you? Wouldn’t it be wonderful to remove all of the uncertainty that comes with trying to sell your business? For the enlightened business owner there is a remarkable […]
The Traditional MBO: Why it may not work with small businesses
Facing the daunting prospect of selling your business to a third party (a competitor, financial buyer or perhaps a strategic buyer) may make you go weak at the knees. An adviser or friend may say “have you thought about encouraging your team to do a management buy-out (MBO) of your business?”. The MBO sounds a […]
Mind the Gap: Motivating your team to achieve your goals
Selling your business is likely to be something you do only once. The biggest challenge (and therefore the complexity with which you must grapple early on) is aligning your interests with those of all of the key members of your team. The cynical observer will say of any business sale or purchase “buy from a […]
Thinking Ahead: the secret to a successful exit
Thinking Ahead: the secret to a successful exit Selling a business for the price you want (or need) will never be an easy task. Counter intuitively perhaps the way to do it is to think ahead and think of others first. Private equity investors joke that they look for only three things in a business: management, […]
Employee Share Schemes – What happens if someone leaves?
Once you have considered a share incentive for your employees you will need to think about what happens if one of the employees to whom an award has been made leaves your business. Generally business owners want to restrict ownership so that there is a mechanism to ensure that a leaver does not take their […]
EMI Options – How do they work?
So we know that Enterprise Management Incentive (EMI) Schemes are tax-advantaged, but what exactly does this mean? In order for EMI options to maintain favourable tax treatment, the scheme (whether under a set of rules or a one-off stand-alone agreement) must be registered with HMRC. Once the scheme is registered, the grant of options must […]
EMI Options – Do you qualify?
An Enterprise Management Incentive (EMI) scheme can be a great way to attract, retain and motivate key members of your team, allowing them to participate in the growth in value of the company on a sale and perhaps enjoy dividends before then. A qualifying company can grant options over shares on flexible terms and the tax […]
Top 7 reasons to consider a share option scheme for your business
For all of us it is all too easy to be focused on day to day activities. A properly designed employee share option scheme will require time and thought along with expert guidance from those who have practical experience of the alternatives. Here are the top 7 reasons to consider a share scheme for your […]
