In the months leading up to a business exit, time is at a premium and the focus is often on maximising the company valuation, avoiding disruption to the business, and managing client relationships. There can be a sense that the “personal stuff can wait, let’s just get the deal done”.
The challenge: in the limited time available how can you maximise the value of your personal pre-exit tax and planning opportunities?
Last month, our CEO and Founder, Will Proger, sat down sat down with Sam Ridgway of the law firm, White & Black Limited, for the most recent episode of the podcast series, WABChats.
In this clip, Will provides some thoughts on the main issues to consider, drawn from over two decades of his work with successful entrepreneurs.
You can listen to the full podcast episode here.
William & Partners works with pre-exit entrepreneurs to ensure there is a plan to address the following:
Cash Management
- What are your plans for the cash immediately following closure of the sale?
- How can you manage you bank counterparty risk effectively without having to open multiple accounts?
- What are the safe strategies for provisioning funds for Capital Gains Tax?
- In time, what is the right approach to selecting an adviser to help with the longer term management of the proceeds?
Tax
- Do you have the right personal tax advisers working in tandem with your corporate tax advice?
- Have you pre-planned correctly to maximise Business Asset Disposal Relief (previously Entrepreneur’s Relief)?
- Have you considered the outlook for CGT rates in your sale process?
- Are there any threats to tax efficiency in your shareholder structure?
Inheritance Tax & Estate Planning
- Do you have up to date wills and Lasting Powers of Attorney? What happens in the event you are incapacitated, or worse, in the final stages of the sale negotiation?
- What are the long term consequences for IHT on the net sale proceeds?
- What opportunities exist for pre-exit planning using Business Property Relief?
Family & Generations
- Are there plans to pass wealth down to younger generations? If so, have you considered how best to control who can access this and when?
- Do you have any philanthropic aims post exit? Have you considered the tax implications for gifts to charity?
- If shareholdings are split across generations, will you continue to act as a family post-exit, or will everyone make their own arrangements? What are the pros of cons of each?
At William & Partners we see our role as a flexible strategic partner, helping you to make sense of your current position as well as identifying the potential blind spots. We invite you to contact us to find out more about how William & Partners works with pre-exit entrepreneurs.