CUSTOMER CHALLENGES

When directors want to exit a company, it can pose many challenges. It was determined that it was in the best interests of the shareholders and the business for one of the shareholders to exit and pursue their own separate career. Cash funds were not available personally, and for business and personal reasons a staged payout was the strong preference of the shareholders. The challenge was to determine a fair valuation that all parties could agree to, and provide an effective buyout structure that would meet the above requirements.
 

OLDFIELD'S SOLUTION

So what was Oldfield’s solution? Once a detailed, comprehensive share valuation had been completed, the shareholder buyout was then completed using a holding company, allowing a staged payment plan that was manageable for the company, acceptable to the exiting shareholder and avoided harming the company’s credit rating and supplier relationships.
 

RESULTS

Our results speak for themselves; the exiting shareholder was able to realise their investment at a tax rate of 10% without the continuing shareholders having to find the personal funds to purchase the shares. Additionally, there was no stamp duty paid on the acquisition of the shares from the exiting shareholder.

Brief Overview

INDUSTRY
Construction

LOCATION
United Kingdom

KEY CHALLENGES
A Shareholder wanted to exit the company in a mutually beneficial way that didn’t place unacceptable cash constraints on the business, so as to pursue a separate career.

ONE SOLUTION
A full business valuation was completed, and then the shareholder was subsequently bought out using a holding company.

RESULTS
A positive outcome for the exiting shareholders whilst limiting the impact on cash flow and credit rating for the company.

DISCOVER MORE ABOUT OUR HOLDING COMPANY EXIT SOLUTION HERE