McBrides, a member of The Corporate Finance Network based in Kent, has successfully advised a business run by two families on a buyout, following a dispute.Nigel Kimber, Corporate Finance Partner at McBrides was introduced by a local solicitor, with aim of finding a solution for the two families who owned 50% of the company each.
The McBrides team were tasked with structuring a £2.5m buyout for one of the families. Nigel and his team began by providing a report and advice of the options available which included the purchase of own shares, new holding company or the other family buying them out completely.
The main asset was a property which provided storage facilities. There was a debate as to whether this was a trading entity or an investment entity. In which case the latter Capital Gains Tax treatment would not be available for the purchase of own shares route. This would impact on Entrepreneurs Relief for Capital Gains Tax purposes too.
Purchase by way of a New Holding company was therefore recommended and tax clearance is given by HMRC.
Their clients were very happy with the advice and subsequent resolvent following the disagreement.