For what might be the biggest commercial transaction of your life, getting your house in order and managing the tax (and risk) efficiencies involved, can (i) help make the sale actually happen; and (ii) ensure you retain the highest proportion of the value you have generated ……………
When you are gearing up for a trade sale, we can provide you with an essential tax support service which will review the proposed commercial transaction from an early stage, and will advise you in the following important ways:
(i) Tax on the sale itself
This will also provide you with advice and guidance in relation to the potential tax consequences of proposals for important matters like deferred consideration, consideration in the form of loan notes (or other securities), and any “earn-out” arrangements;
(ii) Pre-sale planning
By way of one very simple example, we might advise those agreeing to stay on in the company’s employment during a transitional handover period, to downgrade their agreed salary arrangements in favour of higher deferred consideration and a potentially far superior tax outcome.
(iii) Protection from claims
This will be done with a view to minimising the risk of post-sale claims against you, from the Buyer.
(iv) Estate management
(v) House in order
This early overview of the company’s compliance might cover Corporation Tax, PAYE, National Insurance, VAT, R&D Tax Credits, forms P11d, EMI share options (and other aspects in specific circumstances).
The above represents a menu of the typical tax support services we might valuably provide to you and your company ahead of a potential sale. If you would like to explore this for yourself and your business, whether in contemplation of a shorter, or longer, term transaction, please get in touch with your relationship principal here at Harold Sharp or email Tax Partner, Chris Barrington.