A popular exit strategy for many business owners and an excellent succession strategy for any business is a Management Buyout (MBO). This can present an exciting opportunity for a management team to pool resources and purchase all or part of a business, driving it forward, funded internally or with external finance. This can also facilitate a Family Management Buyout (FAMBO) or a Management Buy-In (MBI) usually with private equity backing.

Our specialists at Fairtax understand each transaction has its own complexities and we are on hand to support you through each stage, from initial assessment, planning and structuring, through to execution and completion.

 

Succession Planning With significant Tax Savings

Passing your business to the next generation or a management team can be a big decision and you will naturally wish to ensure that this is structured in a smooth and tax efficient manner. We are enabling owner managers to lower their tax rate in many instances to 10% on both the cash initially extracted on sale as well as deferred consideration which features in most transactions. This potentially allows future earnings to be extracted in a capital form, in the process dropping personal tax rates from as high as 45% down to 10% or lower.

We are also on hand to assist your successors to take the business forward with confidence and financial security.

We can take the stress out of your succession planning whilst helping you to extract the maximum value from the many years of hard work that you’ve put into growing your business.

Our experts will ensure the most tax efficient structure for your transaction by:

  • Conducting an initial feasibility assessment to ensure this is the right option for you; suggesting suitable alternative options if this is not the case
  • Structuring your succession plan to optimise tax savings, tailored to extracting cash to meet your ongoing requirements
  • Assisting with business planning, financial forecasting and business valuation
  • Supporting negotiations with financial backers, vendors and their advisors
  • Implementing a structure designed to capture available tax reliefs
  • Tax clearances
  • Providing end to end project management

 

With our years of experience in managing MBO’s and MBI’s, we’ll ensure your transaction is supported every step of the way to its successful completion. To find out more, speak with one of our specialists today…

*Actual savings on tax will depend on the specific circumstances of your situation and your tax/ earnings status

 

Get in touch

For immediate advice and guidance on your succession plans, please contact our Tax Partners, Stephen Elliott or Patrick Morris on 0333 577 1940. Alternatively you can fill in the enquiry form at the footer of this page.

 

           

 

Need more information on Succession Planning?

We’re here to help. If you have any specific questions you’d like to ask our team, in complete confidence, please email us at info@fairtax.net and we’ll reply within 24 hours. Please also state whether you would like a call back. Fairtax is a trading division of Fairhurst, an accountancy firm with a 70 year pedigree in handling both personal and business tax matters.