With a restructure for tax purposes
Philip Munk of TWP in Surrey has completed a project for his client who was a PR agency, specialising in services to the pharmaceutical industry.
One 50% shareholder wished to partially exit the business, and after considering various options, Philip advised that the company should buyback his shares, rather than the remaining shareholder buying them personally.
Therefore TWP led the deal which included:
- assisting with the valuation of the respective shareholdings;
- approaching the bank and negotiating a suitable debt structure;
- advising upon the various tax consequences of each option;
- setting up a new holding company structure;
- carrying out the 'whitewash' procedure.
The client was delighted as the outcome had been achieved with a new 85:15 split and the business was still funded appropriately to continue its growth.
