“The best thing you can do is the right thing; the next best thing you can do is the wrong thing; the worst thing you can do is nothing.”

Theodore Roosevelt

Company Exits Including MBOs

The MBO or any form of a company exit has the capacity to generate significant sums of money for the departing shareholders, providing opportunities for investment. The company exit event is often, indeed usually, a one-off life event and you need to make sure that you get it right first time! We can help you do this.

If the company exit is structured properly, say for example using tax-advantaged employee share schemes and trust arrangements, then the exit may be organized in a series of piecemeal stages with monies released at each stage for investment. The entrepreneur may well have built up their wealth through the one vehicle of the company that they founded many years earlier and have reached a stage in their life where they want to diversify their investment into a wider portfolio, including say investment funds, blue chip stocks and other market investments.

The piecemeal sale facilitates this process over a number of years with strategies designed to assist the entrepreneur in gradually releasing his/her shares and ensuring that there is successor management to take over the reins after their eventual departure. In the first stages, the owner can sell up to 25% of his shareholding, thereby diversifying his investment portfolio and still control the company’s special resolutions with his 75% residual shareholding.

The application of investment strategies follows, therefore, an event that must be made as tax-efficient and commercially-effective as possible, thereby maximizing the funds available for investment. You can learn about effective exit strategies that can dovetail into effective investment strategies at our Investment Seminars. Indeed, one of the founders of Time for Investment, David Craddock, author of Tolley’s Guide to Employee Share Schemes, is a world-recognized authority on utilizing the employee share schemes and trust structures to maximize the financial benefits from an exit event.

If you would like to speak to a qualified Investment Advisor, please send an email to: David@TimeForInvestment.com