David Young was interviewed by Darryl Bates-Brownsword of Succession+ about the options for Owner Managers wanting to retire &/or sell in this tough year of the Pandemic.
One silver lining for businesses that have seen their profits plummet is that they may still offer potential buyers synergy-value and/or strategic value that can even exceed normal stand-alone value. Listen to the podast to hear other positives!
An interesting alternative is sale to an Employee Ownership Trust, which is a transaction type encouraged by the government.
The 2014 Finance Act provides that such sales are 100% CGT free (provided at least 51% of the share are held by the EOT).
It also provides for tax-free bonus payments to staff. Because the operating company and its governance can continue unchanged, selling Owner-Managers can remain in their current roles indefinitely.
This type of transaction is remarkably flexible, and builds better bonds between management and staff.
Listen to the podcast to hear other positives:
'Exit Insights' podcast with David Young, Nov 2020