Pre-Transaction Structure Reviews: Why Preparing Your Business Before a Sale Matters
A buyer may want your business without wanting everything currently sitting inside the company or group. Over time, businesses accumulate property, investments, surplus cash, historic subsidiaries, separate divisions and other assets that may not form part of a future sale. A pre-transaction structure review identifies those issues before a buyer’s timetable limits the options. What […]
Vendor-Funded Management Buyouts: A Practical Exit Route for Business Owners
For some owners, the most natural buyers are already running the company. A management buyout (MBO) can preserve culture and continuity, but management may not have enough cash to fund the full purchase price. Vendor funding can bridge that gap. Vendor funding is also commonly used in a vendor-initiated management buyout, often called a VIMBO. […]
Structuring the Consideration on a Business Sale: Why How You Are Paid Matters
When selling a business, the headline price is only part of the story. A £10 million offer might be paid through cash, loan notes, rollover shares, an earn-out or a combination of all four. The form of consideration can materially change the timing of tax, the risk retained by the seller and the value ultimately […]
Selling to Private Equity: Key Tax Considerations for Business Owners and Management
A private equity sale often looks very different from a straightforward cash exit. Sellers may receive cash, roll part of their value into the new structure, remain involved in management and acquire additional ‘sweet equity’. Understanding how each element works is important before the commercial terms are fixed. Rollover equity Private equity investors commonly ask […]