With capital gains tax having escaped the Chancellor’s tax hike list, likely only for now, many private business owners are actively considering options for business succession in the short-to-medium term.

In the jaws of the Covid pandemic, the last 12 months has been incomparably challenging for many businesses.  The depth and financial risk of those challenges has varied significantly between businesses and sectors, but one consistent feature is the additional pressure brought about by change and uncertainty. Change and uncertainty, particularly that which is beyond the decision-makers’ control, invariably leads to thoughts about the future… where next for the business? … where next for me?

If all this rings a bell, then please do get in touch.  We are experts in advising private business’ owners on the range of options available in succession – indeed, the last 6-9 months have shown a real flurry of activity in this regard.  Specifically, we have been advising on:

Business sales 

From full sales mandates (identifying a best-fit strategic buyer/investor), to achieving the best possible transactional outcome with a known purchasing party,  Magma’s Corporate Finance team have a great track record of securing ‘beyond expectation’ results for private businesses and their owners.

Management Buy-Ins (MBI) / Buy-Outs (MBO)

Full/partial sales of the business to a management team, more often its existing management team (an MBO), but occasionally through an incoming management team (MBI).   We have the full range of ‘in-house’ expertise to facilitate such a transaction – negotiating the deal, introducing the right funders and structuring the transaction in a commercially-appropriate, tax-efficient manner.

Employee Share Transition

Increasingly popular, a sale of the business in full or part, to a wider employee base.  Similar to an MBO in process, but very different in detail and outcome, we are well versed in Employee Share Ownership based successions.

Our detailed knowledge of the commercial, operational, tax and wider financial implications of the above, as well as wider options, mean we are perfectly placed to consider the business succession conundrum.  Whilst there is no single right answer, we will help find the right answer for you and your business.  To hear more, feel free to get in touch with Mark Tuckwell, Will Lodder or Shaf Bheda on (01788) 539000.